What is a contract?
A contract is an agreement between two or more parties that is enforceable by law. It is essentially a promise whereby one party agrees to do something in exchange for a benefit.
What are the elements that make a contract valid and enforceable:
In order for a contract to be valid, there must be the following elements: offer and acceptance, consideration, capacity, consent, and lawful purpose.
Does the exchange of consideration in a contract have to have a specific value?
The actual value or amount exchanged between the two parties does not matter under law. It has been long held that consideration can be as small as a ‘peppercorn’ – in other words, a small grain of spice is enough to constitute valuable consideration.
Is a minor allowed to enter into a contract?
In every valid contract, both parties must have the ability or capacity to understand the terms and nature of the contract. Therefore, anyone who is not the age of majority in Canada (18 or 19 years) does not have the capacity to enter into a valid and enforceable contract. By the same token, anyone with a developmental disability or has impaired judgement cannot legally enter into a contract.
If I am forced into a contract through threats, is it enforceable and legal?
No. In order for a contract to be legal and enforceable, the two parties must provide genuine consent. This means that there can be no pressure, duress, or undue influence brought to bear on either party to a contract.
What is the purpose of an employee contract?
The purpose of an employment contract is to ensure that both you and your employer have a clear understanding of what is expected during the term of employment. This document can also serve to eliminate any disputes which may arise at a later date. It also helps you to understand what your rights are under the law. Both the employer and employee are bound to the employment contract until such time that it ends due to notice given or a change in terms by either party.
When Should an Employment Contract Be Used?
An employment contract can be used when terms for part-time, fixed employment or permanent full-time are needed. It can also be used when you’ve been hired by a human resources manager, recruitment officer or an employer.
