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Week 12 (Contract Defense continue) - Illegality contracts...

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Illegality - contracts against public policy. Contracts can be unenforceable if it’s illegal by statute, or is outweighed by public policy. 1) contracts prohibited by statute 2) Contracts in violation of licensing statutes 3) Covenants not to compete 4) Tangential illegality A) Contracts Prohibited by Statute. a. like buying and selling drugs, or contract to pay others to commit crimes, such as murder, ect B) Contracts in Violation of Licensing Statutes a. can’t grant someone that they cannot legally do w/o a license. Except if the licenses statute was made sololy to make income, then it’s not against public policy. But if it is for the purpose of protecting the public, then it is against public policy. C) Covenants Not to Compete a. Is a promise by one party not to work in a competing business or to open up a competing business. Courts will take into consider: 1) whether it was in connection with the sale of a business 2) whether it was the employer requiring the employee not to compete with the employer’s after the employment relationship has ended. (postemployment
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