Management and Organizational Studies 2275A/B Chapter Notes - Chapter 8: Unconscionability, Uberrima Fides, Oral Contract

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

Document Summary

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. Legal capacity the ability to make binding contracts: also emphasizes the importance of consent and voluntariness, certain kinds of people are given the benefit of special legal protection. Mental incapacity: both must be able to understand the nature and consequences of their agreement. If the transaction is sufficiently divergent from community standards of commercial morality, this is a strong indication of exploitation: the court will presume unconscionability, the stronger party must now show that the contract was fair. If made in the contract, it is a promise/term in the contract: if proven untrue, this is a breach. If the statement is made prior, it can still have legal consequences.