Persons who were induced to enter into an illegal

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Persons who were induced to enter into an illegal contract by fraud, duress, or undue influence. Persons who were induced to enter into an illegal contract by fraud, duress, or undue influence. Persons who were less at fault than the other party for entering into the illegal contract. At common law, parties to an illegal contract were considered in pari delicto (in equal fault). Some states have changed this rule and permit the less-at-fault party to recover restitution of the consideration they paid under an illegal contract from the more-at-fault party. contract contrary to public policy -A contract that has a negative impact on society or that interferes with the public’s safety and welfare. immoral contract A contract whose objective is the commission of an act that society considers immoral. contract in restraint of trade A contract that unreasonably restrains trade. licensing statute A statute that requires a person or business to obtain a license from the government prior to engaging in a specified occupation or activity. Regulatory licensing statute . Statutes may require persons or businesses to obtain a license from the government to qualify to practice certain professions or engage in certain types of businesses. These statutes, which are enacted to protect the public, are called regulatory licensing statutes. Generally, unlicensed persons cannot recover payment for services where he or she does not have the required license. Revenue-raising statute. Licensing statutes enacted to raise money for the government are called revenue-raising statutes. A person who provides ser- vices pursuant to a contract without the appropriate license required by such a statute can enforce the contract and recover payment for services rendered. exculpatory clause (release of liability clause) A contractual provision that relieves one (or both) of the parties to a contract from tort liability for ordinary negligence. Also known as a release of liability clause. covenant not to compete (noncompete clause) A contract that provides that a seller of a business or an employee will not engage in a similar business or occupation within a specified geo- graphical area for a specified time following the sale of the business or termination of employment. unconscionable contract A contract that courts refuse to enforce in part or at all because it is so oppressive or manifestly unfair as to be unjust. Elements of Unconscionability The following elements must be shown to prove that a contract or a clause in a contract is unconscionable:
• The parties possessed severely unequal bargaining power. • The dominant party unreasonably used its unequal bargaining power to obtain oppressive or manifestly unfair contract terms. • The adhering party had no reasonable alternative. If the court finds that a contract or contract clause is unconscionable, it may (1) refuse to enforce the contract, (2) refuse to enforce the unconscionable clause but enforce the remainder of the contract, or (3) limit the applicability of any un- conscionable clause and thus avoid any unconscionable result. T

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