Bailment occurs when owner of an article of personal property temporarily

Bailment occurs when owner of an article of personal

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Bailment occurs when owner of an article of personal property temporarily relinquishes the possession and control of it to another Bailor – the owner who has parted with the possession Bailee – person receiving the possession If no bailment exists (no explicit relinquishing of possession from one party to another), exculpatory clause irrelevant If bailment exists, exculpatory clause effective if it is very conspicuous and clearly states that bailee will not be liable for negligence Unconscionable Contracts Unconscionable contracts = those so unfair as to “shock one’s conscience” For sale of goods, if court finds contract unconscionable, it may: o Refuse to enforce contract o Enforce remainder of contract without unconscionable clause o Limit application of any unconscionable clause as to avoid any unreasonable result Party must prove both procedural and substantive unconscionability o Procedural unconscionability – lack of meaningful choice on part of one of the parties (i.e. mental disability, lack of education or business acumen) o Substantive unconscionability – examine terms of contract itself to see if oppressive, involve unfair disclaimers of warranty, inflated prices, denial of basic rights and remedies to consumers, penalty clauses, etc. Effect of Illegal Contracts
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Usually courts will not assist parties of illegal contract unless: o Affects rights of protected parties o Parties not equally at fault o Severable contracts – when one contract actually turns out to be two or more separate agreements; illegality of one agreement does not prevent other(s) from being enforced
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Chapter 14 Voidable Contracts Voidable contract – contract which may be avoided (legally set aside) by one of the parties even though contract consists of a definite agreement, is supported by consideration, and has a lawful purpose Capacity Legal ability to make a binding contract Reasons for lack of capacity according to law: Minors – under 18 Common-law rule: all minors’ contracts are voidable at their option Exceptions: under 18 but treated as adults o Married minors o Minors created as adults for purpose of making contracts under court supervision (e.g. child actors) Minors’ liability on ordinary contracts o Minor has right to disaffirm both executor and executed contracts unless other party has legal duty to deal with everyone who requests their services (e.g. airlines) o Only obligation is to return the consideration if able to do so for non-necessity products o Ratification – when minor reaches 18 can ratify contracts made earlier by indicating he/she will go through with contract; he/she will lose disaffirmance right thereafter Minors’ liability on contracts to purchase “necessaries” o Minor liable to other party for the reasonable value of the goods actually used Minors’ liability on contracts involving misrepresentation of age o In most states lying about age = fraud and minor loses protections o In some states:
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  • Spring '08
  • Baker
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