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

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Loren 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. In general, the law assumes that individuals and properly constituted organizations have the legal capacity to form contracts. Legal capacity: the ability to make binding contracts. The age of majority is the age at which a person is recognized as an adult for legal purposes. Those under the age of majority (minors or infants) are in a very different position concerning their ability to enter contracts than are those who have attained the age of majority. The general rule is that minors are not obligated by the contracts they make. However, minors have the option to fulfill their contractual commitments and can enforce a contract against the other party should that party be in breach.