Ch. 10

Illegal Agreements

Statute of Frauds

Ch. 10 – Illegal Agreements

• gambling is generally illegal– lottery is legalized gambling– river boats have legalized gambling

• wager is a bet on something uncertain

• usurious interest – loan sharks

• illegal discrimination

• obstructing legal procedures– bribing jurors, false testimony, price fixing

Ch. 10 – Illegal Agreements

• agreements not to compete

• agreements that affect marriage negatively– citizenship

Ch. 10 – Statute of Frauds

• Contracts that must be in writing:– buy/sell goods for $500 or more– marriage– real property– more than one year to complete– to pay debt or legal obligation of another

Ch. 10 - SOF

• name of parties

• subject matter description

• price

• quantity

• signature

• other essential terms

Ch. 10 - SOF

• ambiguous contracts– things that can be understood in two or more

possible ways– courts will rule in favor of the weaker party

(usually the consumer) if the contract isn’t well written and clear for the consumer to understand

– Parol Evidence Rule – a contract is proven by the written contract only – nothing said before or after is considered