Law Ch. 13

Front 1

violations of statues

Back 1

the courts will not enforce agreements declared illegal by statute

Front 2

licensing statutes

Back 2

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

Front 3

regulatory license

Back 3

licensing statute that is intended to protect the public against unqualified persons; an unlicensed person may not recover for services he has performed

Front 4

revenue license

Back 4

licensing statute that seeks to raise money; an unlicensed person may recover for services he has performed (way of taxing)

Front 5

gambling statues

Back 5

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

Front 6

usury statues

Back 6

establish maximum rates of permissible interest for which a lender and borrower of money may contract

Front 7

violations of public policy

Back 7

agreements having "a tendency to be injurious to the public or the public good"

Front 8

contracts that interfere with public policy

Back 8

restrain trade; excuse or exculpate a party from liability for own negligence; are unconscionable; involve tortutious conduct; corrupt public officials; impair legislative process

Front 9

common law restraint of trade

Back 9

any contract/agreement that eliminates competition or otherwise obstructs trade or commerce (not enforceable)

Front 10

sale of a business

Back 10

the promise by the seller of a business not to compete in that particular business in a reasonable geographic area for a reasonable period of time (this contract is enforceable)

Front 11

employment contracts

Back 11

an employment contract prohibiting an employee from competing with his employer for a reasonable period following termination is enforceable (provided restriction is necessary to protect legitimate interests)

Front 12

exculpatory clauses

Back 12

the courts generally disapprove of contractual provisions excusing a party from liability for his own tortious conduct (unless one party's superior bargaining position enabled him to impose the clause, and not contrary to public policy)

Front 13

unconscionable contracts

Back 13

unfair or unduly harsh agreements (not enforceable, or if any part of contract is unfair it can be refused)

Front 14

procedural unconscionability

Back 14

unfair or irregular bargaining

Front 15

substantive unconscionability

Back 15

oppressive or grossly unfair contractual terms

Front 16

tortious conduct

Back 16

an agreement that requires a person to commit a tort (unenforceable)

Front 17

corrupting public officials

Back 17

agreements that corrupt public officials such as improper influence or bribing police officers (not enforceable)

Front 18

effect of illegality

Back 18

unenforceability-neither party may recover under an illegal agreement where both parties are in equal fault

Front 19

exceptions of unenforceabiltiy (one party may recover)

Back 19

if a party withdraws before performance, if a party is protected by the state, if the parties are not equally at fault, if one party was unaware (excusable ignorance) of illegality, or if contract is partially illegal