Business law - Essay Example

Canadian Business Law Question What result is the court attempting to achieve by ordering the remedy of rescission? Answer: The Common Law provides the remedy of rescission to the victim in the instance where a contractual agreement has been made through fraud and misrepresentation (‘Investor’s Rights’). Accordingly, it entitles the victim with the remedy to rescind the contract and restore both the parties to their former/original positions. According to the Consumer’s Law Chapter 7: General Civil Remedies, enforcement of this law means that the Court officially ‘declare’ the contract as rescinded to ensure that the parties are not sued for breach of contract after it has been rightly rescinded.

In a leading Canadian case titled Wandinger v. Lake et al. (1977), 78 D.L.R. (3d) 305, the plaintiffs entered into a contract with the defendants for the purchase of a motel that will make a profit of $10,000 per year (William & Cotton). The plaintiffs modified the interiors and invested in the furnishings; however, they made less revenue as showed by the defendants. They filed a suit claiming for the court to declare their contract as rescinded. The restitutio in integrum is the fundamental element to become eligible for the remedy of rescission.

However, the Canadian Law recognizes that in case where restitutio in integrum is not possible, the Court of Equity will use its power to do what is ‘practically just’ to restore the parties to their original positions as if nothing has happened. Thus enabling the parties to become eligible for rescinding of the contract and liberation from its liabilities. This principle was developed in the case titled Erlanger v. New Sombrero Phosphate Company (1878), 3 App. Cas. 1218. The Canadian Courts have used this principal in the case Wandinger v.

Lake et al. (1977). Question 2: What is the name for the process or event which occurs when Geddy assumes the obligations of Alex arising from a contractual relationship that Alex has with Neil? Answer: Vicarious liability is the process or event which is the result of occurrence when Geddy (employer) assumes the obligations of Alex (employee) arising from a contractual relationship that Alex has with Neil (third party). Question 3: What are the three criteria which must be met to create a valid statutory assignment?

Answer: Yates postulated that for a valid statutory assignment, following three criterion should be met: (1) Assignment should occur in the present, (2) there is a clear intention of assigning the rights to the assignee and (3) assignment should be in writing. For a valid statutory assignment, the assignment can only be made in the present and not in the future transactions. The existing subject matter can be assigned to the assignee for instance, a trademark can be assigned to the other party.

Another important aspect is that there should be a clear intention that shows that the parties intended to assign the rights to the other party in the contract. In some cases, the assignment clause should be incorporated in the contract like in the case of property law. Reference “Consumer Law, Chapter7: General Civil Remedies.” Web 31 October 2011. Link: http://www.isthatlegal.ca/index.php?name=civil_remedies1.consumer_protection_law_ontario “Investor’s Rights.” Web 31 October 2011.

Link: http://www.himivest.com/malachite/statRights.pdf McNally, William E. & Cotton, Barbara E. “Rescission: A Broader Remedy Than You Think?” Web 31 October 2011. Link: http://mcnallylaw.ca/media/rescission_paper.pdf Yates, Richard A. “Legal Fundamentals for Canadian Business (2nd Edition), Pearson Canada.