Management and Organizational Studies 2275A/B Lecture Notes - Lecture 1: False Statement, Rescission, Consumer Protection

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Cristin Keller

Document Summary

Normally, the law is concerned with enforcing contracts, and it is difficult to (cid:862)back out(cid:863) o(cid:374)(cid:272)e you ha(cid:448)e e(cid:374)tered i(cid:374)to a (cid:272)o(cid:374)tra(cid:272)t: but why, otherwise, the value of contracts would be lost. Sometimes, however, it is necessary for the court to intervene and allow a party to cancel or to avoid a contract. Voidable contract a contract that in certain circumstances an aggrieved party can choose to keep in force or bring to an end. Void contract a contract involving a defect so substantial that it is of no force or effect: void contract: no contract, everybody goes back to their original state. Contracts based on unequal relationships: lack of legal capacity to contract. The law assumes that individuals and organizations have the legal capacity to form contracts. However, children and those with mental incapacities are given special legal protection.