BUS 410 Study Guide - Midterm Guide: Unconscionability, Usury, Executory Contract
29 Mar 2016
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Courts don"t enforce contracts that are void void contracts don"t meet the 6th criteria for a valid contract (no valid purpose) Void contracts are either illegal or contrary to public policy (commit a tort) Void contracts don"t exist (1) against public policy the courts decide if they"re reasonable or not. If they"re not, then they"re unenforceable: contracts in restraint of trade covenants not to compete 1 year and in the same geographic limits are reasonable limits on employment. Companies can enforce the covenant not to compete if you get fired. Often in low-wage jobs people have covenants not to compete, hard because people are then stuck at their jobs. Enforcement of covenants not to compete varies by state: in california, they don"t enforce covenants not to compete lots of startups here. California claims that lawsuit for misappropriation of intellectual property is enough to prevent leaking of trade secrets.
