chapter14

A contract that violates a criminal statute is

Illegal

Courts will not __ illegal agreements

Enforce

A __ contract is illegal unless authorized by state statute

Gambling

Anyone taking out a policy on the life of another must have an __ in that person

Insurable interest 

If there is no insurable interest, the insurance contract is generally

Void 

When a licensing requirement is designed to protect the __, contracts with unlicensed workers are unenforceable

Public

When a licensing requirement is designed merely to raise __, contracts made by unlicensed persons are generally enforceable

Revenue

__ laws prohibit charging excessive interest on loans

Usury

A lender who charges a usurious rate may forfeit the illegal interest, all interest, or in some states, the entire __

Loan ??

A judge may declare a contract void even if it does not violate a statute if it violates

Public policy ??

Contracts that promote __ or illegality are unenforceable

Immorality ??

A noncompete agreement must be __ to a larger agreement to be valid

Ancillary ??

A noncompete clause in an employment contract must be reasonable in __, geographic area, and scope of activity

Time ??

A noncompete clause in the sale of a business must be part of a larger agreement and have reasonable limits on and

Time / Geography ??

An __ clause is a contract provision that attempts to release one party from liability for injury to another

Exculpatory ??

An exculpatory clause is generally unenforceable when it tries to exclude liability for an __ tort or gross negligence

Intentional ??

Exculpatory clauses are usually unenforceable when the activity involves the __ interest, such as medical care or public transportation

Public ??

An exculpatory clause is generally unenforceable when there is greatly unequal __ power

Bargaining ??

An exculpatory clause must be clearly __ and readily visible to be enforceable

Written ??

A __ occurs when one person gives possession and control of personal property to another

Bailment ??

The person who gives possession of property in a bailment is called the __

Bailor ??

The person who receives and possesses the goods in a bailment is called the __

Bailee ??

An __ contract is one that a court refuses to enforce because of extreme unfairness

Unconscionable ??

Plaintiffs claiming unconscionability must prove two elements: procedural unconscionability and __ unconscionability

Substantive ??

__ unconscionability occurs when one party uses its superior power to force a contract on a weaker party

Procedural ??

__ unconscionability occurs when the contract has extremely one-sided and unfair terms

Substantive ??

An __ contract is a standard form contract prepared by one party and presented on a “take it or leave it” basis

Adhesion ??

Under the UCC, the principle of __ was reinforced to prevent unfair contracts

Unconscionability ??

The UCC allows certain limitations on __, even though this can sometimes conflict with unconscionability principles

Remedies ??

Contracts that are illegal or against public policy are generally considered

Void ??