Is a party bound to the terms of a contract even if they have not read or understood the contract?

Ontario, Canada


The following excerpt is from Isildar v. Rideau Diving Supply, 2008 CanLII 29598 (ON SC):

It is a general principle of contract law that where a party signs a document which he knows affects his legal rights, the party is bound by the document in the absence of fraud or misrepresentation, even though the party may not have read or understood the document. The case of L'Estrange v. F. Graucob, [1934] 2 K.B. 394 is often cited in support of this general rule.

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