BCOR 3000 1nd Edition Lecture 13 Outline of Last Lecture 1. Consideration2. Consideration Issues3. Promissory Estoppel4. Disaffirmance5. Time to Disaffirm6. Ratification7. Necessaries8. Emancipation9. Intoxication10. Illegal Contracts11. Contracts Against Public PolicyOutline of Current Lecture 1. Public Policy Examples2. Exculpatory Clauses3. Unconscionable Contracts4. Courts Responses to Illegal ContractsCurrent LectureThese 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 ofa 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 industryExculpatory 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 unfairCourt’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
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