1. CHAPTER 10 Legal Purpose and Proper Form
4/16/2017
CHAPTER 10 Legal Purpose and Proper Form
10-1 Illegal Agreements
10-2 The Statute of Frauds

2. 10-1 Illegal Agreements GOALS
Identify various forms of illegal agreements
Distinguish agreements that, although illegal, the courts will enforce
Chapter 10

3. FOCUS
Identify types of contracts that society, through its courts of law, should not enforce even though all the essential elements for an enforceable contract are present.
Chapter 10

4. 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
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5. WHICH AGREEMENTS ARE ILLEGAL?
(continued)
Agreements that restrain trade unreasonably
Price fixing
Resale price maintenance
Allocation of markets
Agreements not to compete
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6. Name four of the eight illegal agreements discussed in this section.
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7. WHEN WILL THE COURTS ENFORCE ILLEGAL AGREEMENTS?
Protected victims
The excusably ignorant
Rescission prior to illegal act
Divisible contracts
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8. Under what circumstances will the courts enforce illegal agreements?
Chapter 10

9. 10-2 The Statute of Frauds GOALS
Explain why the Statute of Frauds is necessary and what it requires
Identify the main instances when the Statute of Frauds requires a writing
Understand the rules of contract interpretation
Chapter 10

10. FOCUS
Must all contracts be in writing?
Chapter 10

11. WHY HAVE A STATUTE OF FRAUDS?
Contracts within the Statute of Frauds
Executed contracts
Executory contracts
Requirements of the writing
Statute of Frauds requirements
UCC requirements
Special rules for signatures
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12. Name the six essential elements in a writing required by the most demanding Statutes of Frauds standards.
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13. TYPES OF CONTRACTS WITHIN THE STATUTE OF FRAUDS
Contract for the sale of goods for $500 or more
Contract to sell an interest in real property
Contracts that require more than one year to complete
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14. TYPES OF CONTRACTS WITHIN THE STATUTE OF FRAUDS
(continued)
Contract to pay a debt or answer for another’s debt
Exception—main purpose rule
Contract for which the consideration is marriage
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15. Name the five types of executory contracts that require a writing.
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16. HOW ARE CONTRACTS INTERPRETED?
Integration clause
Specific rules of interpretation
Analysis
Conflicting terms
Words
Authors of ambiguity
Implied reasonableness
Parol evidence rule
Exception to the parol evidence rule
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17. Explain the parol evidence rule.
Chapter 10