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Chpt 16 Capacity
Kubasek Dynamic Business Law Chapter 16 Capacity and Legality
Question | Answer |
---|---|
adhesion contract | A contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it bass. Such contracts are legal but are sometimes rescinded on the grounds of unconscionability and the absence of one party's free will to enter a |
Capacity | Persons over the age of majority 18, can enter into binding legal contracts; test Whether the person knows what they are doing or signing. |
Disaffirm Contract | Minors can Disafirm |
affirming a Contract | Minors can Affirm a Contract after 18 |
covenants not to compete | An agreement not to compete against a Party for a set period of time within a designated geographic area. |
Radication of contract | implied radication after turning Age of majority 18 |
exculpatory Clause | basically frees one party (usually the drafter) from all liability arising our of performance of the contract. |
indivisble contract | A contract that connot be divided and must be performed in its entirety. |
in pari delicto | In equal Fault |
unconscionability | Grounds for rescinding an unconscionable contract. |
unconscionable | one party has so much more bargaining power than the other party that the powerful party dictates the terms of the agreement and elminates the other party's free will. |
usury | The lending of money at an exorbitant or unlawful rate of interest. 10% max rate between private parties. |
Legality of contract | Can not enter into a contract for something illegal. |
Limited Liability Causes | need to be conscionable |