Legality and Public Policy

These flashcards cover key concepts related to legality and public policy in contract law, highlighting important definitions and doctrines.

Illegality

Illegal agreements are void and cannot be enforced.

In Pari Delicto

Legal doctrine where parties are equally at fault in a situation, affecting the court's ability to grant relief.

Severability

The ability to remove or sever the illegal parts of a contract while keeping the legal portions intact.

Good Faith

The obligation of parties to a contract to deal honestly and fairly, not injuring the other party.

Unconscionability

A UCC doctrine that renders certain contracts unenforceable due to unfair or oppressive terms.

Contract of Adhesion

A standardized contract imposed by one party on another without negotiation.

Public Policy

Principles that govern the legal limits of contracts or agreements to promote societal welfare.

Statutory Usury

The charging of an illegal rate of interest on consumer loans, regulated by law.

Time-Price Differential

The difference between the cash price and the credit price, often not regarded as usury.

Covenants Not to Compete

Contract clauses that restrict competition, requiring a reasonable scope regarding breadth, time, and distance.