BU231 Chapter Notes - Chapter 7: Ultra Vires, Enemy Alien, Diminished Capacity
Document Summary
Slide 2 answer is d read the question. Getting out of a contract that has offer, acceptance, consideration & intention depends on a court declaring the contract void or voidable. If this happens the court will grant the remedy of rescission to try to place the parties back into the position they were in before the contract was entered into. It is presumed that the parties have capacity to contract. The burden of proof is on the party alleging a lack of capacity. If you don"t have capacity you cannot form intention. Enemy alien (citizen of a country where the resident country is at war with) void. Aboriginal (variety of first nations indians, metis) on reserve issues. Bankrupt undischarged: may voluntarily jump into bankruptcy, when you go bankrupt the contracts you were in are all voided, suspend your right to contract when you are undischarged.
