Business Law Chapter 12

Front 1

what people have potentially voidable contracts?

Back 1

minors and mentally ill and intoxicated persons

Front 2

what types of contracts are not voidable by minors?

Back 2

1.necessaries
2.marriage contrats
3.enlistement to the armed forces
4.goods and services required by law (vaccination)
5.contracts involving innocent third parties

Front 3

minors may rescind contracts as a protective "shield" against adults who may take advantage of them

Back 3

shield or sword doctine

Front 4

contracts made by minors become ratified even after reaching adulthood when:

Back 4

1.use of item
2.making installment payments
3.paying off balance owed
4.declaration to abide by contract

Front 5

Statute of Frauds

Back 5

six types of contracts that mnust be in writing
1.contracts not to be completed within one year
2.contracts for sale of land (real property - ground and anything permanently affixed to it such as buildings, fences, and trees)
3.contracts for sale of goods $500 or more
4.certain contracts of executors and administrators
5.garaunty of debts of third parties (promise to pay anothers bill)
6.contracts in consideration of marriage

Front 6

Parole Evidence Rule

Back 6

written agreement is the final expression of agreement of the parties, not to be contradicted by prior oral negotiations

Front 7

Best Evidence Rule

Back 7

courts accept only the original of a writing contract, not a copy

Front 8

types of consideration

Back 8

1.money
2.property
3.charitable pledges
4.forbearance

Front 9

forbearance

Back 9

giving up something you have the legal right to do

Front 10

usurious agreement

Back 10

charging more than the amount of interest allowed by law (usury)

Front 11

Restrictive Employment Covenant

Back 11

protects employers from employees who might take trade secrets, customer lists, or other confidential material to a competitor

Front 12

an employee cant work for a competitor in the same field.. they are limited to

Back 12

1. a specific amount of time
2. a specific geographical area

Front 13

contracts against public policy are

Back 13

1.obstructing justice
2.interfering with public serves
3.restraining trade (supressing competition)