LEB 320F 1st Edition Lecture 16 Outline of Last Lecture II Chapter 12 Case Study Review III Acceptance IV Consideration V Hamer v Sidway VI Quarture v Allegheny County VII Exceptions VIII Laclede Gas Co v Amoco IX Settlement of Debts a UnLiquidated b Liquidated X Promissory Estoppel Outline of Current Lecture XI Illegality XII Void a Licensing XIII Bremmeyer v Peter Kiewit Sons XIV Usury a Contracts in restraint of Trade XV Systems Software v Barnes XVI Ethic Moment XVII Exculpatory Contracts XVIII Seigneur v National Fitness institute XIX Unconscionable Contracts XX Doughty v Idaho Frozen Foods XXI Voidable Contracts a Minority b Mental awareness c Intoxication Current Lecture Illegality o Void non existent to the law Contrary to state federal law Contrary to public policy o Gambling Don t want to encourage the behavior TX against public policy Purchase necessary Pepsi Bottling v Coke Bottling Not in Book No because tickets are available Void o Risk shifting Insurance on something in which you have an insurable interest V Wagner a building will burn o Licensing Dr not a doctor Insurance v not insured Lawyer not a lawyer Regulatory or revenue Cant use as a sword can use as a shield If lose a license in middle of a case you entitled to nothing Bremmeyer v Peter Kiewit Sons o To protect public not contracts from each other o Revenue Usury changing over the state amount of interest o Over a certain rate In Texas max Interest is 17 But Visa and MasterCard can charge 21 because of locations in S Dakota o Contracts in restraint of Trade Covenants not to compete The only time courts take your contract and change them Ancillary to another contract Reasonable o Time scope geography Usually a year Systems Software v Barnes o 6 months o Competitor o J Affirmed Ethic Moment o Contract for a Kidney o Contract to serve as a surrogate mother Technology disrupting the legal system Exculpatory Contracts o Excuse from ones own negligence not gross intentional Lack of bargaining power Effect on public Seigneur v National Fitness institute o Sj D o Affirmed Right of parties to contract Cost of items Unconscionable Contracts o Common law just so bad they re not going to allow it o Williams v Walker Thomas Furniture Repossessed 16 items of furniture because of 1 late payment o UCC Procedural Complete imbalance in bargaining power Substantive The allocation of risk so one sided Doughty v Idaho Frozen Foods o Futures Contract for Ps contract written with union and buyers o Better deal o Not good enough Voidable Contracts o Contracts which are just fine on their face o Look at the parties and their capacity mental awareness protects unequal mental capacity o Minority o Mental awareness o Intoxication Minority o Differs from state to state but usually 18 o Generally voidable at minor s option o Minor can hold party to deal o Executed v Executory Minors o Result People will not contract with minors o Ratification Affirm after age of majority o Necessary Minor to pay for the value used Encourage people to sell food to minors o Minors lying about their age Look at loss to other party Court go all over Mentally impaired o If adjudicated insane void o If not voidable if incapable of knowing what s going on Intoxicated o May disaffirm if very obvious
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