BLAW 2200-Exam 3 Study Guide
Questions and Answers All 100%
Verified.
General Rule - Answer the courts will not enforce agreements declared illegal by statute
Licensing Statute - Answer require formal authorization to engage in certain trades,
professions, or businesses
Regulatory License - Answer licensing statute that is intended to protect the public against
unqualified persons; an unlicensed person may not recover for services she has performed
Revenue License - Answer licensing statute that seeks to raise money; an unlicensed person
may recover for services he has performed
Gambling Statutes - Answer prohibit wagers, which are agreements that one party will win
and the other lose depending on the outcome of an event in which their only interest is the gain
or loss
Usury Statute - Answer establish a maximum rate of interest
Sunday Statutes - Answer prohibition of certain types of commercial activity on Sunday (also
called Blue Laws)
Common Law Restraint of Trade - Answer unreasonable restraints of trade are not
enforceable
Sale of a Business - Answer the promise by the seller of a business not to compete in that
particular business in a reasonable geographic area for a reasonable period of time is
enforceable
Employment Contracts - Answer an employment contract prohibiting an employee from
competing with his employer for a reasonable period following termination is enforceable
provided the restriction is necessary to protect legitimate interests of the employer
Exculpatory Clauses - Answer excuses a party from liability for her own tortious conduct (the
courts generally disapprove of contractual provisions)
,Unconscionable Contracts - Answer unfair or unduly harsh agreements (not enforceable)
Procedural Unconscionability - Answer unfair or irregular bargaining
Substantive Unconscionability - Answer oppressive or grossly unfair contractual terms
Tortious Conduct - Answer an agreement that requires a person to commit a tort is
unenforceable
Corrupting Public Officials - Answer agreements that corrupt public officials are not
enforceable
Unenforceability - Answer neither party may recover under an illegal agreement where both
parties are in pari delicto (in equal fault)
Exceptions - Answer permit one party to recover payments
What are 5 exceptions that would allow one party to recover payment? - Answer 1. Party
withdrawing before performance
2. Party protected by statute
3. Party not equally at fault
4. Excusable ignorance
5. Partial illegality
Pari Delicto - Answer in equal fault
Definition of Minors - Answer persons who are under the ago of majority (usually 18 years)
Liability on Contracts - Answer a minor's contracts are voidable at the minor's option
Disaffirmance - Answer avoidance of the contract; may be done during minority and for a
reasonable time after reaching majority
Ratification - Answer affirmation of the entire contract; may be done upon reaching majority
Liabilities for Necessaries - Answer a minor is liable for the reasonable value of necessary
items (those that reasonably supply a person's needs)
, Liability for Misrepresentation of Age - Answer prevailing view is that a minor may disaffirm
the contract
Liability for Tort Connected with Contract - Answer if a tort and a contract are so intertwined
that to enforce the tort the court must enforce the contract, the minor is not liable in tort
Person Under Guardianship - Answer contracts made by a person placed under guardianship
by court order are void
Mental Illness or Defect - Answer a contract entered into be a mentally incompetent person
(one who is unable to understand the nature and consequences of his acts) is voidable
Intoxicated Persons - Answer a contract entered into by an intoxicated person (one who
cannot understand the nature and consequences of her action) is voidable
Rule - Answer contracts within the statute of frauds must be evidenced by a writing to be
enforceable
Electronic Records - Answer full effect is given to electronic contracts and signatures
Suretyship Provision - Answer applies to promises to pay the debts of others
"Promise Must Be Collateral" - Answer promisor must be secondarily, not primarily, liable
Main Purpose Doctrine - Answer if primary object is to provide an economic benefit to the
surety, then the promise is not within the statute
Executor (Administrative Position) - Answer applies to promises to answer personally for
duties of decedents
Marriage Provision - Answer applies to promises made in consideration of marriage but not
to mutual promises to marry
Land Contract Provision - Answer applies to promises to transfer any rights, privileges,
powers, or immunities in real property
One-Year Provision - Answer applies to contracts that cannot be performed within one year
Questions and Answers All 100%
Verified.
General Rule - Answer the courts will not enforce agreements declared illegal by statute
Licensing Statute - Answer require formal authorization to engage in certain trades,
professions, or businesses
Regulatory License - Answer licensing statute that is intended to protect the public against
unqualified persons; an unlicensed person may not recover for services she has performed
Revenue License - Answer licensing statute that seeks to raise money; an unlicensed person
may recover for services he has performed
Gambling Statutes - Answer prohibit wagers, which are agreements that one party will win
and the other lose depending on the outcome of an event in which their only interest is the gain
or loss
Usury Statute - Answer establish a maximum rate of interest
Sunday Statutes - Answer prohibition of certain types of commercial activity on Sunday (also
called Blue Laws)
Common Law Restraint of Trade - Answer unreasonable restraints of trade are not
enforceable
Sale of a Business - Answer the promise by the seller of a business not to compete in that
particular business in a reasonable geographic area for a reasonable period of time is
enforceable
Employment Contracts - Answer an employment contract prohibiting an employee from
competing with his employer for a reasonable period following termination is enforceable
provided the restriction is necessary to protect legitimate interests of the employer
Exculpatory Clauses - Answer excuses a party from liability for her own tortious conduct (the
courts generally disapprove of contractual provisions)
,Unconscionable Contracts - Answer unfair or unduly harsh agreements (not enforceable)
Procedural Unconscionability - Answer unfair or irregular bargaining
Substantive Unconscionability - Answer oppressive or grossly unfair contractual terms
Tortious Conduct - Answer an agreement that requires a person to commit a tort is
unenforceable
Corrupting Public Officials - Answer agreements that corrupt public officials are not
enforceable
Unenforceability - Answer neither party may recover under an illegal agreement where both
parties are in pari delicto (in equal fault)
Exceptions - Answer permit one party to recover payments
What are 5 exceptions that would allow one party to recover payment? - Answer 1. Party
withdrawing before performance
2. Party protected by statute
3. Party not equally at fault
4. Excusable ignorance
5. Partial illegality
Pari Delicto - Answer in equal fault
Definition of Minors - Answer persons who are under the ago of majority (usually 18 years)
Liability on Contracts - Answer a minor's contracts are voidable at the minor's option
Disaffirmance - Answer avoidance of the contract; may be done during minority and for a
reasonable time after reaching majority
Ratification - Answer affirmation of the entire contract; may be done upon reaching majority
Liabilities for Necessaries - Answer a minor is liable for the reasonable value of necessary
items (those that reasonably supply a person's needs)
, Liability for Misrepresentation of Age - Answer prevailing view is that a minor may disaffirm
the contract
Liability for Tort Connected with Contract - Answer if a tort and a contract are so intertwined
that to enforce the tort the court must enforce the contract, the minor is not liable in tort
Person Under Guardianship - Answer contracts made by a person placed under guardianship
by court order are void
Mental Illness or Defect - Answer a contract entered into be a mentally incompetent person
(one who is unable to understand the nature and consequences of his acts) is voidable
Intoxicated Persons - Answer a contract entered into by an intoxicated person (one who
cannot understand the nature and consequences of her action) is voidable
Rule - Answer contracts within the statute of frauds must be evidenced by a writing to be
enforceable
Electronic Records - Answer full effect is given to electronic contracts and signatures
Suretyship Provision - Answer applies to promises to pay the debts of others
"Promise Must Be Collateral" - Answer promisor must be secondarily, not primarily, liable
Main Purpose Doctrine - Answer if primary object is to provide an economic benefit to the
surety, then the promise is not within the statute
Executor (Administrative Position) - Answer applies to promises to answer personally for
duties of decedents
Marriage Provision - Answer applies to promises made in consideration of marriage but not
to mutual promises to marry
Land Contract Provision - Answer applies to promises to transfer any rights, privileges,
powers, or immunities in real property
One-Year Provision - Answer applies to contracts that cannot be performed within one year
