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Summary

Requirements for an enforceable contract: An intention to create a legal relationship, Offer, Acceptance, Consideration, Capacity, Legality. Intention to Contract vs. Invitation to do Business (aka to are not offers) Postal rule: acceptance is valid when and where placed in post box Quantum Meruit m...

Description

- Requirements for an enforceable contract: An intention to create a legal relationship, Offer, Acceptance, Consideration, Capacity, Legality. - Intention to Contract vs. Invitation to do Business (aka “Invitation to Treat” are not offers) - Postal rule: acceptance is valid when and where placed in post box - Quantum Meruit - “As much as he deserves”. A quasi-contractual remedy that permits a person to recover a reasonable price for services and/or materials requested, where no price is established when the request is made. Court decides on price based on price of similar goods or services in the area. Applied where it is clear that consideration is intended by parties, but agreement fails to set price.Available if contract has been partly performed. Courts concerned with compensation for the work performed - Contract is enforceable by the minor but not against the minor (voidable at the option of the minor) - Contracts for non-necessaries and debt contracts are “absolutely void” - Contract is void if it’s made by a mentally disabled person. Liability can’t be incurred. - Non-necessaries: not bound (voidable at impaired persons option) if: 1)Can establish was in such a condition when the contract was entered into 2) The other party was aware of the condition when the contract was entered into. Contract must be repudiated immediately after reaching capacity or will be implied ratification. Impaired person can ratify contract - Some contracts are only rendered voidable by public policy or by specific statutes - Voidable if the parties do not comply with statute or the policy - Depending on the reasons for lack of legality, contracts can be deemed void or voidable depending on severity. - Agreements to avoid Workers Compensation, land use planning or wagering laws are void and unenforceable - Unlicensed persons: Only voidable at option of party who is not the tradesperson or professional - Agreements contrary to the Competition Act Void ab initio and unenforceable - Prima facie void as a restraint of trade - Mistake of fact: Must be so fundamental as to change the fundamental nature of the contract. General rule contract is void. - Misrepresentation: Could cause the contract to be voidable or rescission. Voidable at the option of the injured party provided they can prove they relied on misrepresentation. - Undue influence: Contract is voidable at option of weaker party. - Undue duress (not to property)/ Blackmail, threat: Contract is voidable at option of person once they come out from under duress -...