MCS 3040 Chapter 8: Law Chapter 8

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joseph Radocchia

Document Summary

Importance of enforcing contracts: preserve integrity, reliability, and predictability of contractural relationships, unjust to enforce contracts under exceptional circumstances. Options for when party nds themselves within legal doctrines: Voidable contract: a contract that, in certain circumstances, an aggrieved party can choose to keep in fore or bring to an end. Void contract: a contract involving a defect so substantial that it is of no force or effect. Legal capacity: the ability to make binding contracts. !1: in order to form contract, both parties must be able to understand the nature and consequences of agreement, if one party unfairly exploits the other party who is lacking capacity, then contract isn"t. Duress: contract mades as a result of one party being threatened are not enforceable. Economic duress: the threat of economic harm that coerces the will of the other party and results in a contract: when determined, contract is voidable at option to party who was under duress.