1. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 1 Chapter 10 CHAPTER 10 Legal Purpose and Proper Form 10-1 10-1Illegal Agreements 10-2 10-2The Statute of Frauds

2. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 2 Chapter 10 10-1Illegal Agreements  GOALS  Identify various forms of unenforceable illegal agreements  Specify agreements that, although illegal, the courts will enforce

3. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 3 Chapter 10 WHICH AGREEMENTS ARE ILLEGAL?  Illegal lotteries  Agreements to pay usurious interest  Agreements involving illegal discrimination  Agreements that obstruct legal procedures  Agreements made without a required competency license  Agreements that affect marriage negatively  Agreements that restrain trade unreasonably  Agreements not to compete

4. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 4 Chapter 10 CHECKPOINT  Name four of the eight illegal agreements discussed in this section.     

5. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 5 Chapter 10 WHEN WILL THE COURTS ENFORCE ILLEGAL AGREEMENTS?  Protected victims  The excusably ignorant  Rescission prior to illegal act  Divisible contracts

6. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 6 Chapter 10 CHECKPOINT  Under what circumstances will the courts enforce illegal agreements?     