Chpt 9-11 Flashcards
(51 cards)
What is the definition of an infant?
A person who has not reached the age of majority.
The age of majority varies by jurisdiction but is commonly 18 years old.
What is capacity with contracts?
Who does the law protect?
The ability to enter a contract
- Who may lack the ability to appreciate the nature of their acts
- Who would not be in an equal bargaining position
Who can not enter into contracts?
Minors (infancy) or people with temporary or permanent impairment
What is repudiation?
The refusal to perform an agreement or promise
What is an action for tort?
A legal claim brought against someone in a civil court when their actions (or inaction) have caused harm or injury to another person
What is Tort Law?
A civil law that compensates people who have been harmed by another person’s actions
When is a contract with a minor enforceable?
When the minor would benefit from it - for example employment or apprenticeship contracts
Can minors repudiate a fair contract that has not been fully performed?
Always - once repudiated, a minor is entitled to a return of any deposit paid. (Must return any goods, etc., previously received)
What is ratification?
The adoption of a contract or act of another by a party who was not originally bound by the contract or act
Are parents liable under Common Law for debts incurred by their minor children?
Not normally, unless the minor has is an acting agent for the parent or has pledged the parent’s credit to obtain the necessaries of life
What must someone who signed into a contract drunk do if they don’t want the contract?
- Must be able to prove they were drunk
- The other person must be aware and agree that the person was drunk
- Must repudiate as soon as sober and able to do so
What is Ultra Vires?
An act that is beyond the legal authority or power of a legislature or corporate body
What is a Special Act Corporation?
A corporation established by a specific act of Parliament, rather than under general corporation laws (ex university, hospital, municipality, etc.)
What is consideration in contracts?
Something that has value in the eyes of the law, and which a promisor receives in return for a promise
What is capacity in contract law?
Capacity in contract law is the legal ability of a person to enter into a binding contract
Can a bankrupt person enter into a contract?
They have limited capacity - only for necessities
What is the Competition Act?
federal law that aims to maintain and promote competition within the Canadian market by preventing anti-competitive practices like price fixing, bid-rigging, and abuse of dominant market positions, ultimately ensuring consumers have access to competitive prices and product choices
Name examples that the Competition Act applies to
Price-fixing, eliminating or reducing competitors, mergers or monopolies against public interest, etc.
Why is insurance legal (even though it is considered a wager)?
The insured person is presumed to have an interest in the insured event not happening
Is a contract between an unlicensed tradesperson or professional and contracting party legal?
No (think medical, dental, legal, engineer, etc.)
What are administrative acts?
Decisions made by government agencies and officials
What are the three categories involving contracts with restraints of trade?
- Agreements contrary to the Competition Act
- Agreement between vendor/purchaser of a business which contain unreasonable restriction on the right of a vendor to engage in similar business in competition with the purchaser
- Agreement between employer/employee that unreasonably restricts the right of the employee to compete with the employer after the employer/employee relationship is terminated
What is prima facie?
“on first appearance.”
Are contracts with restraint on trade valid?
They are void and unenforceable unless the restraint is BOTH legal AND necessary
