tailieunhanh - Lecture Business law: The ethical, global, and e-commerce environment (15/e): Chapter 15 - Mallor, Barnes, Bowers, Langvardt

Chapter 15 provides knowledge of illegality. After completing this chapter, students will be able to: Explain the concept of illegality as it pertains to contract law, identify illegal agreements and discuss the effect of illegality, analyze effect of non-compete and exculpatory clauses, explain unconscionability. | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 3 Introduction to Contracts The Agreement: Offer The Agreement: Acceptance Consideration Reality of Consent Contracts P A R T 3 Capacity to Contract Illegality Writing Rights of Third Parties Performance and Remedies Contracts P A R T Illegality P A E T R H C 15 In a free society the state does not administer the affairs of men. It administers justice among men who conduct their own affairs. Walter Lippman Learning Objectives Explain the concept of illegality as it pertains to contract law Identify illegal agreements and discuss the effect of illegality Analyze effect of non-compete and exculpatory clauses Explain unconscionability An agreement will be unenforceable because of illegality if the agreement involves an act or promise that violates a law or is against public policy Even if voluntary consent existed between two parties with capacity to contract Effect: no remedy for breach of an | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 3 Introduction to Contracts The Agreement: Offer The Agreement: Acceptance Consideration Reality of Consent Contracts P A R T 3 Capacity to Contract Illegality Writing Rights of Third Parties Performance and Remedies Contracts P A R T Illegality P A E T R H C 15 In a free society the state does not administer the affairs of men. It administers justice among men who conduct their own affairs. Walter Lippman Learning Objectives Explain the concept of illegality as it pertains to contract law Identify illegal agreements and discuss the effect of illegality Analyze effect of non-compete and exculpatory clauses Explain unconscionability An agreement will be unenforceable because of illegality if the agreement involves an act or promise that violates a law or is against public policy Even if voluntary consent existed between two parties with capacity to contract Effect: no remedy for breach of an illegal agreement Illegality Sometimes government legislatures enact statutes that declare certain types of agreements unenforceable, void, or voidable Examples: New law changes the limits allowed for interest to be charged on a loan New law prohibiting creation of a landfill in environmentally sensitive areas Agreements That Violate Statutes These agreements violate public policy: Agreements to commit a crime Agreements promoting an illegal purpose Agreement to perform an act for which the person is not properly licensed Agreements in restraint of competition Agreements That Violate Public Policy A common regulatory statute requires a person to obtain a license, permit, or registration before engaging in a certain business or profession If the purpose of the statute is to protect the public against dishonest or incompetent practitioners, then an agreement is unenforceable if an unlicensed person agrees to do an act that requires a license Licensing Statutes If the sole purpose of