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Difference between revisions of "Making a Contract"
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For example, offering a friend a ride in your car is not usually intended to create a legally binding relation. But consider if you agree with your friend to drive them to work on a regular basis in exchange for the friend paying you $20 each week towards the fuel and maintenance costs of the car. Here, the law is more likely to recognize that a contract was entered into. | For example, offering a friend a ride in your car is not usually intended to create a legally binding relation. But consider if you agree with your friend to drive them to work on a regular basis in exchange for the friend paying you $20 each week towards the fuel and maintenance costs of the car. Here, the law is more likely to recognize that a contract was entered into. | ||
==Who can make a contract== | |||
===Can anyone make a contract?=== | |||
No. Each party to a contract must have the mental capacity to make the contract. Mental capacity means that you have to understand what is in the contract. It also means that you understand what effect the contract will have on you. | |||
===How old does someone have to be to enter into a contract?=== | |||
A person of any age can enter into a contract in British Columbia. But special rules apply if a person under age 19 (called a “minor” under BC law) enters into a contract. | |||
A contract cannot be enforced against a minor. There are some exceptions: | |||
* if the contract provides the minor with the “necessaries” of life - services that are vital to the minor’s health or welfare, | |||
* if on reaching age 19, the minor affirms the contract (that is, agrees to be bound by it), or | |||
* if within one year of reaching age 19, the minor partially performs the contract or doesn’t “repudiate” the contract (that is, doesn’t reject it). | |||
If none of these exceptions apply, a minor isn't responsible for keeping up their end of any contract they enter. | |||
On the other hand, a minor can enforce a contract against an adult party to the contract. | |||
{{PLSStorybox| image = | |||
| text = “I agreed to paint my neighbour Harold’s fence this summer for $200. Then my family organized a big summer trip to Europe. My dad told me that because I’m 17, I could get out of the contract to paint the fence without any penalty. Because I’m a minor, I could enforce the contract against Harold, but he can’t enforce the contract against me.”<br>- Jordan, Chilliwack | |||
}} | |||
==The contract itself== | |||
===Does a contract have to be in writing?=== | |||
In most cases, no. In fact, most of the everyday contracts we make, such as buying a ticket for a movie or going to the hairdresser, are not put in writing. If the elements of a contract are present, a verbal agreement is just as legal and binding as a written one. | |||
A contract is the agreement between people; a written document is usually just proof of the agreement. | |||
However, some kinds of contracts '''must''' be in writing. For example: | |||
* When real estate is involved, all agreements must be in writing. An agreement to buy and sell a home must be in writing, and so must the mortgage that makes the purchase possible. | |||
* Contracts containing a guarantee must be in writing. A guarantee is an agreement where one party agrees to pay the debt of another person if that person defaults on the debt. | |||
* A “distance sales contract” must be in writing. This kind of contract is one that is entered into not in person (for example, online or over the phone) and there is no opportunity to inspect what you are buying. | |||
* A door-to-door sales contract, known under the law as a “direct sales contract”, must be in writing. | |||
* A payday loan agreement must be in writing. Payday loans are small, short term loans - for $1,500 or less, that must be repaid within 62 days, when the borrower receives their paycheque or other income. | |||
=== Can a contract be made by email?=== | |||
Yes. Agreements made in emails can be valid contracts. It makes no difference if the agreement is set out on paper or in an electronic format. As long as the elements of a contract are present, a contract can be made by email. | |||
=== How can you sign a contract? === | |||
Under BC law, there are some contracts you have to sign with a handwritten signature for them to be considered enforceable. Examples are a transfer of land, a will, and a power of attorney. | |||
But for most contracts, you don’t have to actually sign a piece of paper to “sign a contract”. You can sign most contracts by: | |||
* typing your name into a contract, | |||
* inserting an electronic image of your handwritten signature, or | |||
* clicking on a link that says you agree to the terms and conditions. | |||
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