AFM231 Chapter 8: Chapter 8

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Darren Charters

Document Summary

Voidable contract: a contract that, in certain circumstances, an aggrieved party can choose to keep in force or bring to an end. Misrepresentation or important mistakes concerning the contract. The contract was with a minor (voidable at option of the minor) The contract was with a mentally impaired or intoxicated person. 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. Economic duress: the threat of economic harm that coerces the will of the other party and results in a contract. Undue influence: unfair manipulation that compromises someon e"s free will or choice. Unconscionable contract: an unfair contract formed when one party takes advantage of the weakness of another. Misrepresentation: a false statement of fact that causes someone to enter a contract. It is a factual statement, not just an opinion. It induces the other party to enter the contract.