GB110 Chapter Notes - Chapter 16: Standard Form Contract, Unconscionability, Usury

• School: Bentley University
• Department: Information and Process Management/General Business Courses
• Course: GB110
• Professor: Alexander

Document Summary

Elements of a contracts: agreement, offer, acceptance, consideration, capacity. Violations: may be illegal under federal or state law. Public policy: public policy = existing legislation, judicial decisions. "absence of meaningful choice together with terms unreasonable advantageous to one of the parties: procedural and substantive unconscionability. Formed by parties with unequal bargaining power: trade practice may support this. Interest charged in excess of the maximum allowable rate. Substantive unconscionability refers to unconscionability of the contract"s terms or the contract as a whole. Some statutes criminalize the receipt of usurious interest: noncompetition clauses, most states (except california) will not strike down a noncompetition clause as illegal due to public policy or due to antitrust laws if it meets these tests: The clause is part of an agreement for some other purpose: ex: part of an employment contract or an agreement to buy and sell a small business.