Validity of a Contract (Lesson 5.3) Flashcards
What are the four essential elements of a valid contract under CCQ 1385?
Capacity
Valid cause
Valid object
Free and enlightened consent
Who has legal capacity to contract in Quebec?
Anyone 18 years or older.
Who lacks full capacity?
Minors (need approval from a parent/guardian)
Protected persons (with court-appointed tutors or curators)
What is “cause” in contract law?
The reason or motivation behind entering into the contract.
What is “object” in contract law?
The actual goods or services exchanged in the contract.
When are cause or object invalid?
If they are illegal or against public order, the contract is unenforceable.
What does “free and enlightened” consent mean?
Consent given voluntarily, with understanding of the material facts.
What can vitiate (invalidate) consent?
Error (CCQ 1400)
Fraud (CCQ 1401)
Fear (CCQ 1402–1403)
Lesion (CCQ 1406)
What is an excusable error?
An honest mistake made in good faith (e.g., mislabeled product). The contract can be annulled.
What is an inexcusable error?
A mistake due to carelessness or unreasonable assumptions. The contract cannot be annulled.
What constitutes fraud?
Lies or misrepresentation
Concealing information
Remaining silent when the other party is clearly misinformed
Who must prove the fraud?
The victim — buyer beware.
What kind of fear invalidates consent?
Fear of serious harm to person or property due to violence, threats, or abuse of power.
Who can invoke lesion to annul a contract?
Only minors or protected persons acting without proper representation.
What are the two types of lesion?
Disproportionate value between what was given and received
Lack of understanding of the financial consequences (e.g., can’t afford the transaction)
What happens if consent was vitiated by error, fraud, fear, or lesion?
The contract can be annulled and the injured party may claim direct damages (except for excusable error, where no damages are awarded).
What is nullity?
The contract is treated as if it never existed — retroactively void.
What is cancellation?
The contract is valid until a certain date, then becomes ineffective moving forward.