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- - Violations of Statutes
- - Violations of Public Policy
Violations of Statutes
Courts won't help either party (e.g. gambling statues that prohibit wagering)
Violation of Public Policy
(e.g. covenants not to compete) Used in contracts for sale of a business and in employment contracts; upheld only if: (1) ancillary (not the main purpose of the contract); (2) necessary (to protect a legitimate business interest of the party protected by the covenant); (3) reasonable in terms of duration and geographic scope.
- An agreement that "shocks the conscience" of the court (is it fair?)
- *Primarily a consumer protection doctrine
- *Originated under the UCC, has been extended to apply to certain common law consumer contracts also
Types of Unconscionable Contracts
*It is so unfair or unduly harsh that it is not enforceable (2 types: (1) Procedural Unconscionability [bargaining process]; (2) Substanative Unconscionability [contract terms])
Personal, family, or household use.
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