ADMS 3420 Lecture Notes - Lecture 3: Canadian Imperial Bank Of Commerce
1 Jun 2018
School
Department
Course
Professor
ADMS 0 - Chapter 7 iute
9
When is an agreement an enforceable legal contract?
- For a contract to be legally enforceable it must meet the following requirements:
o Both parties have the capacity to enter into a legal contract
o Both parties have the intention to create a legally enforceable contract
o There is: (1) An Offer; (2) Acceptance of that Offer; and (3) Mutual Consideration
Capacity to Enter into a Contract
- A contract involves a meeting of the minds of two or more informed and consenting
parties
- If a party lacks the the capacity to understand what they are agreeing to, then a meeting
of the minds cannot be said to exist
- If a person who lacks capacity enters into a contract, a court may decline to enforce the
contract (e.g minors, children, mentally disabled)
- Case Example: Toronto Malboroughs v. John Tonelli pg. 88 CASE SUMMARY MINUTE
54:30
- The ourt ill ol efore a otrat ith a ifat if it eefits the ifat.
Otherise, the o’t efore it i oer of eploitation.
- In the case of a mental disability, the court will not enforce the contract if they believe
that the contract is exploitative.
Intention to Create a Legally Enforceable Contract
- There must be an intention to create a legal contract. Not every promise is intended to
create a legally binding contract.
- I assessig hether suh itetio eists, Judges ask hether a reasoale perso
would assume that the intention existed.
o This is alled a Ojetie Test. A “ujetie Test asks What did this person
atuall eliee at the tie?
- Ee if a perso did’t ited it, if a reasoale perso assumed it was intended, they
should’e ko.
- Consider the Sarmiento v. Wilding & Rampage decision on p. 90, dealing with intention
of an unpaid intern to create an employment contract. Minute 67:55
Elements of a Contract: Offer, Acceptance, and Mutual Consideration
- Offer and Acceptance
o An employer will offer to employ a worker.
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