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26 Cards in this Set
- Front
- Back
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illegal agreement |
when the formation is a crime, tort or contrary to public policy |
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effects of illegality |
illegal agreement: -void -parties not entitled to aid of court -unenforceable if entered for illegal purpose |
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protection of one party |
when the agreement violates a law that protects the public, the affected party may seek relief
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unequal guilt |
least guilty party is granted relief when public interest is advanced by doing so
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partial illegality |
when a contract has different promises and some are legal and some are illegal.
the legal ones are forceable if can be separated form the illegal ones. illegal parts will be ignored if it can be interpretad as the whole legal or illegal, it will be considered legal until proven wrong |
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crimes and civil wrongs |
illegal contract if calls for an act considered a crime or civil wrong and is illegal and void
can't make contract for the other party to kill someone. it can't be enforced |
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good faith and fairness |
implied obligation that neither party will do anything that will destroy the right of the other party to receive their end.
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unconscionable clauses |
court won't decide if contract is fair or not, but may put a provision of the contract as unenforceable because is to harsh for the other party
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unconscionability |
when part of the contract gives the idea to the court that takes too much advantage of the buyer
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determination of unconscionability |
for a court to enforce contract provision there must be procedural and substantive elements
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procedural unconsionability |
matters the freedom of assent
comes from inequality of bargaining power and absence of real negotiations |
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contracts of adhesion |
contract offered by dominant party to a inferior bargaining power party on a take-it-or-leave-it basis |
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substantive unconsionability |
focus on terms of contract that are unconscionable.
such unconscionability is one a term of the contract is so one-sided that shocks the consience arbitration could be used in employment problems court may impose to follow the contract without the unsconcionability term |
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public policy |
protection from that which may injure the public or could be contrary to public good or interest.
if agreement is offensive to society court may dictate its unenforceable |
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lottery |
plan by which a consideration is given for a chance to win a prize
has three elements: prize, chance , consideration private lotteries are illegal |
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gambling |
illegal contracts
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Effect when entering business against the law |
is binding or void, depending how strong against public policy is |
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statutory regulation of contracts |
to protect on party of the contract, statutes provide that contracts have a specific statutory model
consumer protection legislation gives consumer right to rescind the contract in certain situations |
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licensed calling or dealings |
statute requieres for certain jobs to have a license in order to be able to perform
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contracts in restrain of trade |
agreement that unreasonable restrains trade is illegal and void bc against public policy
this could make a monopoly |
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Noncompetition covenant |
asks former employee not to compete with the business. only valid if the duration and geographic place is reasonable |
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sale of business |
when selling a business, it is asked to the seller to not put the same business near the one he sold or for a certin time, or both
if the restriction is reasonable that protects the other party, it is valid and enforceable` |
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When restriction is invalid? |
restriction of competition is invalid when the time or geographic distance is to broad. blue-pencil rule: court establishes a new time and distance to be followed |
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usury |
lending money at a higher interest rate than allowed by law
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usurious agreement |
statutes provide a maximum annual contract rate of interest that can be exacted under the law of the state sometimes doesn't apply to loans made to corporations |
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In pari delicto |
Equally guilty |
