Chapter 8 - Contract law 2. At the end of this chapter you should understand: the capacity of parties to contract; whether or not a contract with a minor is valid, void or voidable; reality of consent and why it must be present to form a valid contract; | This is the prescribed textbook for your course. Available NOW at your campus bookstore! CONTRACT LAW 2 CHAPTER 8 Learning objectives At the end of this chapter you should understand: the capacity of parties to contract whether or not a contract with a minor is valid, void or voidable reality of consent and why it must be present to form a valid contract the concepts of ‘mistake’, ‘misrepresentation’, ‘duress’, ‘undue influence’ and ‘unconscionable conduct’ the defence of non est factum the remedies available to an injured party Learning objectives (cont.) the element of legality of object, both by statute and at common law what a contract ‘in restraint of trade’ is and when it will be enforceable the effect of illegality on a contract the circumstances in which illegal terms of a contract may be severed. Capacity of parties Minors Persons of unsound mind or intoxicated (alcohol, drugs) Bankrupts Corporations Limited capacity—minors Minor (. <18 yrs) Valid Voidable Void Minors—valid contract Valid Cash transactions Beneficial Re service: Education Employment Instruction Necessaries Involves: Food Clothing Shelter Medicine Dependent on: Lifestyle Time of sale Minors—voidable contract Voidable Differs between states due to introduction of statutes. (. non-binding) If repudiated during minority, or within a reasonable time of turning 18 (. binding) If ratified within a reasonable time of turning 18 Void Valid Minors—void contract Void All ‘accounts stated’ Contracts for the repayment of money lent Contracts for the payment of goods supplied, or to be supplied, other than necessaries Limited capacity—persons of unsound mind and intoxicated persons Voidable contract if: one party did not understand what he/she was doing because of the condition they were in, and the other party in the contract knew of the condition. Voidable at the option of party in a) Restricted capacity Bankrupts Must be disclosed if: credit in excess of $4623 trading under a firm or . | This is the prescribed textbook for your course. Available NOW at your campus bookstore! CONTRACT LAW 2 CHAPTER 8 Learning objectives At the end of this chapter you should understand: the capacity of parties to contract whether or not a contract with a minor is valid, void or voidable reality of consent and why it must be present to form a valid contract the concepts of ‘mistake’, ‘misrepresentation’, ‘duress’, ‘undue influence’ and ‘unconscionable conduct’ the defence of non est factum the remedies available to an injured party Learning objectives (cont.) the element of legality of object, both by statute and at common law what a contract ‘in restraint of trade’ is and when it will be enforceable the effect of illegality on a contract the circumstances in which illegal terms of a contract may be severed. Capacity of parties Minors Persons of unsound mind or intoxicated (alcohol, drugs) Bankrupts Corporations Limited capacity—minors Minor (. <18 yrs) Valid Voidable Void .
