BLAW 3201 Chapter Notes - Chapter 13: Affirmative Defense, Protected Group, Common Carrier
Document Summary
An essential requirement of a binding promise or agreement is legality of objective. When the formation or performance of an agreement is criminal, tortious, or otherwise contrary to public policy, the agreement is illegal and unenforceable (illegal. The illegal bargain is made unenforceable to: discourage such undesirable conduct, preclude the inappropriate use of the judicial process in carrying out such socially undesirable bargains. General rule: the courts will not enforce agreements declared illegal by statute. Establish a maximum rate of interest: the rates vary from state to state and among types of transactions, legal effect(recovery) to be given varies from state to state. States have no interest rate limits on credit cards. Transactions that are really loans may not be clothed with the trappings of a sale for the purpose of avoiding the usury laws. 1: lose the right of principle and interest (worst, lose the right of interest, lose the right of excess interest.
