Definition- contract

Agreement between people to do stuff, always involves a prestation (money, services, goods)
PG 77, & must be done in good faith

Types of contracts

 Contracts of adhesion (art. 1379)- 1 party imposes, not negotiable(Hydro-Quebec)

vs
 Contracts by mutual agreement (art. 1379 par.2)- 2 parties negotiate

Adhesion, mutual agreement, Onerous Contracts,

 Synallagmatic Contracts (art. 1380)- both sides agree to do something (perform service and I
pay)

Vs
 Unilateral Contracts (art. 1380 par.2)-one side does something but you don’t expect other side
to do anything (donating money)

Hydro-Quebec contract is a contract of adhesion & synallagmatic

 Onerous Contracts (art. 1381), for money

Vs
 Gratuitous contracts (art. 1381 par.2), for free

If you donate money it is a mutual agreement, unilateral, onerous contract.

 Commutative contracts (art. 1382)- certain, outcome is certain, if want to buy all hay of this year
you know the production so certain
Vs
 Aleatory contracts (art. 1382 par. 2)- uncertainty involves no 100% guarantee of the result. You
contract knowing this uncertainty (6/49), going to a lawyer, want to buy all your hay of next year
but they don’t know what the production will be.

 Contracts of instantaneous performance (art. 1383)- you go and buy something it is right away

Vs
 Contracts of successive performance (art. 1383 par.2)- newspaper subscription, shovelling of
snow
  Consumer contract (art. 1384) between a business and a regular person (final user of good),
consumer protection acts.

Exchange

1. Exchange of consent (art. 1385) freely exchange, can’t force someone to go under contract
2. Express or tacit (art. 1386), express is very clear you nod your head, you say ok, you shake
hands. Tacit is implied, make person believe you agreed

Offer & Acceptance

 A proposal with essential elements (art. 1388)

 To determined or undetermined person (art. 1390), put it on Les Pac to undetermined people.
 Term (art. 1390 par. 2)
o No term, ends in a reasonable time (art. 1392)
o With term, expired on date set (art. 1392)
o Death, bankruptcy or protective supervision causes offer to lapse before acceptance
received (art. 1392 par. 2), you die and you had posted an ad on Les Pac and somebody
sent email before death to accept the offer then you are banded to the contract

Acceptance

o Contract is formed upon acceptance (art. 1387)

o If acceptance not equal to offer then no acceptance but counter-offer (art. 1393), when
you change one of the variables in the offer. So up to you to decide if you accept offer in
those terms
o Silence does not equal to acceptance (art. 1394)

Capacity (who can contract)

1. Minors
a. 14 yrs + can contract for employment or profession
b. All minors can contract for usual needs (clothing, food, books)
c. Tutor can assist to contract (parent)
2. Inapt person
a. Protective supervision

Cause to contract (reason) art. 1410-1411

1. A reason needs to exists for the contract (art. 1410)

2. An illegal reason nulls contract (art. 1411)

Form (art. 1414)

1. No required specific wording or form in contract

 2. May be verbally or written
3. Exception: marriage, hypothecs, notarial wills, insurances, these must be on paper, if not on
paper you are not married. Special wording

Defects of consent

Conditions

o Consent by capable person (art. 1398)

o Given in free and enlightened (art. 1399)

Vitiated if (cancelled):

1. Error (art.1400)- mistake, misunderstanding, not a personal change

a. Must be a real error not personal mistake
i. Ex: thought was buying X but is really Y
2. Fraud (art. 1401)
a. Error that is intentional to mislead you (art gallery sells you a fake, you can go back and
cancel sales
b. Person contracted on intentionally false information
c. Would not have contracted or for less
3. Fear (art. 1402-1404)
a. No contract if done out of fear, threats
b. Fear = physical, property,(1402) and authority threat (1403), i will hurt your family ect
i. i.e. ransom paid with loan, you cant go to the bank ask for money to pay ransom
but you never see your dog again, cant go back to bank, you will have to pay the
loan
4. Lesion(art.1405-1406)
a. Taking financial advantage of person
b. Above market value + not within person’s financial means
c. Person must not have full legal capacity (minor/inapt)

Action

o Right to annulment or reduction (art. 1407)

o Damages

Nullity of contracts

Principle

1. Contract failing to meet conditions of formation is annulled (art.1416)

2. May be absolutely or relatively null

Absolute nullity
 1. Contracts violating public order (art.1417), selling sister on e bay
2. Invoked by any interested party or court (art.1418)

Relative nullity

1. Contracts violating a condition of formation and necessary to protect the individuals (art. 1419)
2. Invoked only by contracting parties (art. 1420)

Effect

1. Null contract considered to never have existed

2. Parties must restore all prestations (art. 1422)

Confirmation

1. Express or tacit will to renounce nullity (art.1423), confirm a contract (relative nullity), even
though null you can confirm it and still
2. Contracts of absolute nullity cant be confirmed (art.1420 par.2)
3. Contracts of relative nullity van be confirmed (art.1420 par.2)
4. If many parties to a contract, one confirmation doesn’t prevent nullity for others(art.1424)