Law for Business, 15e by Ashcroft Chapter 10: Illegal Agreements Law for Business, 15e, by Ashcroft, © 2005 West Legal Studies in Business, a Division of Thomson Learning

10.2 Chapter 10 Objectives  Explain the consequences of a contract for an unlawful purpose or a purpose achieved illegally.  Explain what types of contracts are void for illegality.  Identify the types of contracts that are contrary to public policy.

10.3 Prohibited Contracts  Gambling contracts  Sunday contracts  Usurious contracts  Contracts of an unlicensed operator  Contracts for the sale of prohibited articles  Contracts in unreasonable restraint of trade

10.4 Usurious Contracts  Usury is the limit of interest that may be charged.  The maximum contract rate is the highest rate that can be legally charged.  The legal rate applies to all situations in which interest may be charged but in which the parties were silent as to the rate.

10.5 Contracts in Restraint of Trade Contracts not to compete Contracts not to compete Contracts to restrain trade Contracts to restrain trade Unfair competitive practices Unfair competitive practices Contracts to fix the resale price Contracts to fix the resale price

10.6 Contracts Contrary to Public Opinion  Contracts limiting the freedom of marriage include:  Promising never to marry.  Refraining from marrying for a definite time.  Agreeing not to marry a certain person.  Contracts obstructing the administration of justice.  Contracts injuring the public service.

Do you have any questions about illegal agreements? Be sure to check the websites mentioned in the textbook for further explanations