BUS311_chapter_05

Butfirstitstimeforsomemoreterminology 51 valid

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Unformatted text preview: . These include lack of capacity, defective assent issues (mutual mistake of material fact, duress, undue influence, fraud), illegality, and having an oral agreement in one of the few situations in which the law requires a writing. But first, it’s time for some more terminology! 5.1 Valid, Voidable, Unenforceable, and Void Agreements A valid contract is one that meets all legal requirements. It’s what people generally aim for when they seek to make a contract. Sometimes, though, it’s not what they end up with. A voidable contract results from lack of either capacity or genuine assent. Voidable means that at least one of the parties, and sometimes both, can get out of the contract without being liable for breach, generally because of some circumstance present when the contract was made. Contracts made by minors (people under a statutory age) are voidable at the option of the minor. Contracts made under duress or undue influence, or contracts that involve fraud by one party, are voidable at the option of the victim. H...
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