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Will Lemond, Alex Anderl, Alex Fuery, Carter Brown. Legal Agreements and Statute of Frauds. What’s your verdict?.
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Will Lemond, Alex Anderl, Alex Fuery, Carter Brown Legal Agreements and Statute of Frauds
What’s your verdict? • The three main providers of Internet access to the city of Miller have a problem. There are too many costumers and as a result they would have to buy new hardware to keep up with the speed the customers wanted. Instead they agreed to increase their price 30% so that there would be less customers who would be willing to pay but their revenue would still increase and they wouldn’t have to buy new hardware. Is this legal?
Goals • Identify types of agreements that are illegal and unenforceable • Specify illegal agreements that the courts will still enforce • Know the 6 Statute of Frauds requirements for a contract
What is an illegal agreement? • An illegal agreement is an agreement that involve contracting for an illegal act. • They are generally void and unenforceable
What are some examples of enforceable agreements? • Lotteries • Casinos, pari-mutuel betting, state-run lotteries, bingo games and pull-tab betting • Technically illegal, but can be done legally with licenses
What are some illegal agreements? • Loaners must charge reasonable interest rates • Agreements involving illegal discrimination • Agreements that obstruct legal procedures • Compounding a crime: paying lawyer not to prosecute someone
More illegal agreements • Agreements made without a required license • Competency license: Ensures that business can perform their services adequately • Without it, no contracts • Revenue license: Strictly to raise revenue • Business can still raise money without license, but with penalty • Agreements that affect marriage negatively • Agreements that restrict trade unreasonably
Price Fixing • Competing companies agree to charge same price • Big rigging: competitors who bid on jobs agree one will be lower bidder • Deprives consumers from a lower, fair price • Agreement not to compete
When will courts enforce illegal agreements? • Excusably ignorant • Does not know contract is illegal, but other party knows it is illegal • Have choice whether to enforce contract or not • Divisible: separation of legal and illegal parts of a contract • Buying pistol and other hunting supplies but fail to get handgun cleared by state • Parol evidence: words spoken prior to execution of final writing or at time of signing
Statute of Frauds • Determines which types of contracts must be in writing • Buying and selling goods <$500 • Real Estate • Executed Contract: already been fully performed, Executory contract opposite • Quasi-contract: some element of enforceable contract is missing, but courts still enforce it
Statute of Frauds Requirments • Names of parties • Description of subject matter • Price • Quantity • Signature • Other essential terms