Illegal Agreements Chapter 10.2

When Courts will Enforce Most illegal contracts are void and unenforceable However, the law can allow for restitution… o If connection is slight b/t illegality and agreement o One party is innocent of wrongdoing

When Courts will Enforce Protected Victims o Any agreement in which someone was persuaded by fraud, duress, misrepresentation, or undue influence Excusable Ignorant (can enforce legal part or obtain restitution) o Doesn’t know contract is illegal, but the other person does, and the illegality is minor

When Courts will Enforce Rescission prior to illegal act o Pay someone $50 for stolen copy of final, but change mind before the test is stolen Divisible Contracts o Consideration is given for both the legal and illegal part of the contract (courts can enforce legal part)

The Statute of Frauds Requires that several of the most important types of contracts be placed in writing to be enforceable in court Those Required: o Buy and sell goods for a price of $500 or more o Buy and sell real property o Require more than one year to complete o Promises to pay the debt or answer for a legal obligation of another person o Promise to give something of value in return for promise of marriage

The Statute of Frauds Executed contracts – one that has been fully performed (regardless of writing - neither party can reverse) Executory contracts – one that has not been fully performed o If not in writing, neither party can compel performance on the other

The Statute of Frauds Requirements of the Writing (Typically) o Names of the parties o Subject matter description o Price o Quantity o Signature o Other essential terms Time, method of delivery, terms of payment, etc.