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Difference between revisions of "Contract Defences"
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* They may not be credible and so lose by not proving their case on the balance of probabilities (the likelihood that one party’s evidence is more likely to be accurate than the other’s). | * They may not be credible and so lose by not proving their case on the balance of probabilities (the likelihood that one party’s evidence is more likely to be accurate than the other’s). | ||
* They may run afoul of some rule of evidence that does not allow them to admit evidence crucial to proving the case. | * They may run afoul of some rule of evidence that does not allow them to admit evidence crucial to proving the case. | ||
=== Common-law defences=== | |||
==== Illegality==== | |||
Courts generally do not enforce contracts that are for an '''illegal purpose''' or that contravene a statute. An obvious example of an unenforceable contract is one made with the intent of harming someone. Some interesting exceptions to the general rule include: | |||
* '''Gambling debts:''' Historically considered uncollectable and illegal, court decisions suggest they are now collectable.
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* '''Illegally paid interest:''' Although it is illegal under the [http://canlii.ca/t/7vf2 ''Criminal Code''] to lend or collect interest at an annual rate above 60% (except as authorized under payday loan legislation), in at least some instances the courts have allowed the recovery of the illegally paid interest.
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==== Misrepresentation==== | |||
If a person makes a false statement to induce someone to enter a contract, the deceived party may be entitled to a remedy in court on the basis of '''misrepresentation'''. Historically, the courts have awarded different types of remedies, depending on the nature of the misrepresentation. For example, they may let the deceived party out of a contract completely or give the person partial compensation through a damages award. | |||
To some extent, common law principles of misrepresentation have been overtaken by related defences for deceptive acts or practices that apply to a wide range of consumer and credit transactions under the provisions of the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act'']. | |||