Chapter 13- Illegal Bargains

Question 0

Gambling Contracts

Answer 0

Gambling contracts are a promise to pay someone based on a wage or bad. A wage or bet is something that no one has control over. Contracts for gambling are NOT enforceable unless they are specifically permitted by law.

Question 1

Licensing Statutes: Regulatory vs Revenue Based

Answer 1

Regulatory based: main purpose is to regulate a profession and protect the public from unlicensed provision of services. The contract entered due to the provision of services by a regulatory unlicensed provider is unenforceable is unlicensed.
Revenue Based: The main purpose is revenue for the state. The contract entered is due to the provision of services by a revenue unlicensed provider is still enforceable and binding if unlicensed.

Question 2

Usurious Contracts

Answer 2

• The charging of super high interest rates.
• each state has a limit on the interest rate in that state, and rates that go beyond that limit or unenforceable. Contracts with a usurious interest or unenforceable.

Question 3

Contracts that restrain trade

Answer 3

• non-compete: enforceable w 2 elements present:
  1) protect a legitimate business interest, they must prove that it vital the employee does not work in area.
  2) they are in a reasonably geographic scope & duration (2 years)

Question 4

Contracts with over-reaching exculpatory clauses

Answer 4

-A contract excuses a party from liability or harm caused by that party. These contracts are effective and enforceable to disclaim an excuse liability due to negligence, but NOT due to recklessness or intent.

Question 5

Unconscionable Contracts:

Answer 5

UNENFORCEABLE

-contrary to the dictates of conscience, unprincipled, exceeding what is justifiable.

Question 6

Certain Adhesion Contracts

Answer 6

Take it or leave it (drafted by one party and non negotiable.) may be enforceable
Tortious Contracts (requires a person to commit a tort) is unenforceable)