Contract and Consumer Law

OBJECTIVE
Students will learn when contracts are unenforceable.

PROCEDURE
1. Ask students if they or anyone they know has entered into any written contracts, such as cell phone agreements or car loans. What, to them, were important aspects of the contract?

2. With the idea of capacity to consent introduced as one type of scenario where a contract can be cancelled, read Unenforceable Contracts as a class.

KEY QUESTIONS
• Would it be fair to try to enforce a contract where an honest mistake exists? Why or why not?
• Why would undue influence be presumed to exist between certain groups, such as teachers and students?

3. Either as individuals or in small groups, have students create four columns in their notebooks:

MISREPRESENTATION
MISTAKE
DURESS
UNDUE INFLUENCE

In each column, students should create a scenario where a contract would not be enforceable. Discuss scenarios as a class.

TEACHER BACKGROUND INFORMATION: CAPACITY TO CONTRACT
To enter into a contract, you must have the capacity to do so. Generally speaking, everyone is capable of entering into a contract. Exceptions are made for minors, those with mental disabilities and intoxicated persons. This is because contracts must be made with consensus ad diem. This means there must be mutual understanding of the terms of a contract. Minors, people with mental disabilities, and intoxicated people may not have the capacity to understand the terms. Therefore, consensus ad diem may not exist.