BCOR 3000 1nd Edition Lecture 13 Outline of Last Lecture 1 Consideration 2 Consideration Issues 3 Promissory Estoppel 4 Disaffirmance 5 Time to Disaffirm 6 Ratification 7 Necessaries 8 Emancipation 9 Intoxication 10 Illegal Contracts 11 Contracts Against Public Policy Outline of Current Lecture 1 Public Policy Examples 2 Exculpatory Clauses 3 Unconscionable Contracts 4 Courts Responses to Illegal Contracts Current Lecture These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Public Policy Examples Contracts to divorce will never get enforced if there is a payment contract to get out of a marriage Prenuptial agreements law supports marriage therefore contracts will be examined Cannot be too unfair or too uneven fairness Have to look at how the contract was entered in to Each person in a pre nup needs their own lawyer Non compete Agreements sale of business or employment a contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographical area Must be reasonable Time Line of business Geography Ex If a lady quits a consulting firm she cannot continue consulting until the time on her previous contract is up or as long she is not in the same industry Exculpatory Clauses Disclaimers waivers Generally not valid for essential services Release parties from contracts if there is physical injury or monetary injury Lift ticket example will not sue if injured on the back of the ticket Valid if the activity is not a daily activity i e skiing invalid if it is an essential daily activity i e food Valid for negligence some injury happens at the hand of the company person Not valid for gross negligence or intentional acts done by employee machine equipment tools Issue Can adult disclaim for their child yes Unconscionable Contracts Contract can be avoided based on extreme unfairness Usually based on both the terms themselves and how they were negotiated If it shocks the conscious not valid Ex Old lady with car sells it for 500 didn t know its real value so she can sue b c its unfair Court s Response to Illegal Contract Usually ignores the case even if one party benefits at the expense of the other Exceptions where a court might act Justifiable ignorance if you just didn t know you shouldn t have to do too much research but if you search and don t find anything wrong you at least tried and can use justifiable ignorance Protected Class e g employees strict minimum wage laws and protection for employees if paid under minimum wage for something it is illegal One withdraws from the contract Severable contract Will delete illegal part and enforce the rest
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