BU231 Chapter Notes - Chapter 7: Precontract, Insurable Interest, Ultra Vires
Document Summary
Bu231 chapter 7: formation of a contract: capacity to contract and legality of object. The burden of proving essential elements of a contract. Once plaintiff shows there was offer and acceptance and consideration for promise, court will promise an intention to create legal relations. Court will also presume 2 additional elements are present: defendant has capacity to make a contract, contract is legal. As a matter of policy, the law may excuse one party (e. g. a young child) from their obligations. Repudiate: reject or declare an intention not to be bound by. Minor/infant: person who has not attained the age of majority according to the law of his or her province. Age of majority: age at which a person is recognized as an adult according to the law of his or her province. Contract made by a minor is not binding on her but binding on the other side, whether or not other side knows he"s dealing with a minor.
