Management and Organizational Studies 2275A/B Chapter Notes - Chapter 8: Fundamental Breach, Oral Contract, Punitive Damages

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

Document Summary

Preserve integrity, reliability, and predictability of contractual relationships: otherwise business world would not be able to predict with any certainty which agreements were binding. Prevent people from pulling out deals because they have found better opportunities remedy situations where an apparently valid contract fails to reflect the real agreement, is fundamentally unjust. Legal doctrines which are exceptions to an enforceable contract: unequal relationship between the two parties, misrepresentation, important mistakes in the contract, defect within the contract itself. Voidable contract: an aggrieved party can choose to keep in force or bring to an end. Void contract: involving a defect so substantial that it is of no force or effect - contract is considered to have never existed at all. Legal capacity: the ability to make binding contracts importance of consent and voluntariness, children and those with mental incapacities are given special legal protection, minors.