Business Law 11.2

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Author:
akoskey
ID:
56298
Filename:
Business Law 11.2
Updated:
2010-12-15 16:00:34
Tags:
business
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Description:
Legality
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  1. lawful contracts
    requirement for enforceable contract, usual for individuals and business
  2. illegal contracts
    have illegal objects, void and unenforceable
  3. contracts contrary to statutes
    violate statutes, illegal, void, unenforceable
  4. usury laws
    set the upper limit on annual interest rate that can be charged on certain types of loans by certain lenders, charge higher; illegal
  5. sabbath laws
    prohibit or limit the carrying on of certain secular activities on Sundays; if done, contract illegal
  6. contracts to commit crimes
    illegal, unenforaceable
  7. contracts contrary to public policy
    contracts that violate public policy are illegal, void, and unenforceable. if contract commisions immoral act, illegal
  8. gambling statutes
    make certain types of gambling illegal
  9. effect of illegality
    an illegal contract is void, therefore, the parties cannot sue for nonperformance
  10. special business contracts
    • contracts in restraint of trade
    • licensing statutes; regulatory and revenue-raising
    • exculpatory clauses
    • covenants not to compete
  11. contracts in restraint of trade
    contracts that restraint trade are illegal contracts
  12. regulatory statutes
    enacted to protect public. unlicensed cannot recover payment
  13. revenue-raising statutes
    enacted to raise money for the govmt. unlicensed can enforce contracts and recover for rendering services
  14. exculpatory clauses
    contract clauses that relieve one or both parties from tort liability for ordinary negligence. illegal if affect public policy, reult from superior bargaining power, attempt releive intentional torts, fraud, recklessness, or gross negligence
  15. covenant not to compete
    illegal if unreasonable in line of business, geographic area, or time
  16. unconscionable contracts
    oppressively unfair or unjust to shock the conscious of the court. (contracts of adhesion)
  17. elements of unconscionability
    • 1. parties posessed severely unequal bargaining power
    • 2. dominant party unreasonably used its power to obtain unfair contract terms
    • 3. adhering party had no reasonable alternative
  18. remedies for unconscionability
    • 1. refuse to enforce contract
    • 2. refuse to enfore inconscionable clause
    • 3. limit the applicability of any unconscionable clause so as to avoid any unconscionable result

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