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Definition
| mental ability to understand his or her rights and obligations under the contract |
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Term
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Definition
| after reaching age of majority, person states orally or in writing that he or she intends to be bound to the contract |
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Term
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Definition
| former minor takes some action after reaching age of majority consistent with intent to ratify the contract |
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Term
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Definition
| • When a party gives a loan at an interest rate exceeding the legal maximum |
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Term
| Unconscionable contract (2 types) |
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Definition
Agreement in question is so unfair that it is void of conscience
Procedural unconscionability – conditions that impair one party’s understanding of a contract
Adhesion contract – agreements presented as ultimatums or as the only chance to take it
Substantive unconscionability – agreement is overly harsh or lopsided |
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Term
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Definition
| releases one of the contracting parties from all liability, regardless of who is at fault or what injury is suffered |
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Term
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Definition
| both parties are equally responsible for the illegal agreement |
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Term
| Justifiable ignorance of the facts |
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Definition
| one party claims to not know about the illegal portion of a contract (can be excusable) |
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Term
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Definition
| contain multiple parts that can each be performed separately |
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Term
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Definition
| requires complete performance by both parties, even if it appears to contain multiple parts |
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