Bsl

Front 1

Violations of Statutes

Back 1

-- Courts will not enforce agreements declared illegal by statute

-- Manners in which contracts can be invalidated as illegal

-- Any contract that is inconsistent with the spirit/point of the statute will be unenforceable and illegal

Ex: I give you 100$ to kill Katie. You doesn't do it, I sue you... You win because there is a statue that says murder is illegal

Front 2

Wagering Statue

Back 2

Gambling statutes prohibit wagers, which are agreements that one party will win and the other lose depending on the outcome of an even in which their only interest is the gain or loss.

*Insurance = not a bet b/c your only interest isn't on the "bet" that your car won't break, interest is wanting to be able to get car fixed, too.

Front 3

Usury

Back 3

-- Usury statues establish a maximum rate of interest

--Statutes that prohibit charging excessive interest

-- In almost every state it's 18% besides South Dakota (21%)

Front 4

Licensing Statutes

Back 4

-- Licensing Statutes require formal authorization to engage in certain trades, professions, or businesses

Front 5

Regulatory License

(Licensing Statutes) -- Purpose

Back 5

-- Intended to protect the public against unqualified persons - an unlicensed person may not recover for services performed.

-- To assure minimum competency.

-- Failure to have this will invalidate

-- Looks to punish people who aren't what they claim to be (law does want people pretending to be doctors, etc).

Front 6

Revenue (Raising Purpose) License

(Licensing Statutes)

Back 6

-- Licensing Statute that seeks to raise money, an unlicensed person may recover for services performed.

-- License where all you have to do is pay a fee to obtain it

-- Mostly practitioners

--I get a haircut, jacob has no license, I say I don't have to pay. I actually do because his license is revenue raising

Front 7

Violations of Public Policy

Back 7

-- Public policy = the code of morals, economic, religious principles or other fundamental beliefs that a society holds as valuable

-- EXTREMELY subjective (changes based on judge )

-- Allows big brother to stick hands btw two consenting parties who have contracted on what they want under the terms of what they want. BB says they won't allow it b/c it violates public policy

Front 8

Agreements in Restraint of Trade

(General)

Back 8

- Unreasonable restraints of trade are not enforceable

- Arise in the sale of business and in employment Ks

-- S.o.B. = the promise by the seller of a business not to compete in that particular business within reasonable time/geography following termination is enforceable

-- Employment Ks = a K prohibiting an employee from competing with this employer for a reasonable amount of time is enforceable provided the restriction is necessary to protect legit interests of the employer.

Front 9

Agreements in Restraint of Trade

(Requirements -- when is it enforceable?)

Back 9

1. Non competing agreement must be ancillary to a K and serve a legitimate purpose

(can't simply prevent w/o reason. Ex of legit = client base, looking to protect clients or intellectual property

2. Restriction is reasonable in time, scope and geography

3. Undue hardship to the public

Noncompetes will always cause hardship to employer but if the public suffers (no access to lawyer, doctor, etc) it's unenforceable.

Front 10

Exculpatory Provisions

(Clauses) - General

Back 10

Courts generally disapprove of contractual provisions excusing party from liability for his own tortious conduct.

-- Releasing a party from their own negligence

-- Ex: banana peel on walmart's floor that no one cleans up, someone slips and breks neck.

--Law tries to reach a balance, these are unenforceable UNLESS meets criteria.

Front 11

Exculpatory Provisions

(Clauses) - Requirements-- when is it enforceable?)

Back 11

1. Written document is clear and unambiguous as to what you are releasing (based on std. of "reasonable person")

2. Only enforceable if you are releasing act of negligence but nothing other than negligence

3. Must be a reasonable alternative to signing agreement

4. If you owe a duty to the public, you cannot have someone sign an exculpatory provisions.

Front 12

Unconscionable Agreements

Back 12

- Fundamentally unfair or harsh agreements are not enforceable

-- Procedural Unconscionability = unfair or irregular bargaining

-- Substantive unconscionablility = oppressive or grossly unfair contractual temrs

Front 13

Unforceability

Back 13

Neither party may recover (unenforceable) under an illegal agreement where both parties are in equal fault

Front 14

Exceptions to "Unenforceability"

Back 14

- Party withdrawing before performance

- Party protected by statute

- Party not equally at fault

- Excusable ignorance

- Partial illegality