Editing Contracts Ayres/9th ed. Outline
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* Restatement 178: Balancing Test to determine when term is unenforceable on grounds of public policy | * Restatement 178: Balancing Test to determine when term is unenforceable on grounds of public policy | ||
** o If legislation exists making term illegal --> weigh illegality and monetary loss ( | ** o If legislation exists making term illegal --> weigh illegality and monetary loss (Sinnar) | ||
** o If no legislation, weigh… | ** o If no legislation, weigh… | ||
*** Interest in enforcement: (a) parties' justified expectation, (b) any forfeiture that would result if enforcement denied, (c) special public interest in enforcement | *** Interest in enforcement: (a) parties' justified expectation, (b) any forfeiture that would result if enforcement denied, (c) special public interest in enforcement | ||
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*** If clause to be severed is so integral to the K | *** If clause to be severed is so integral to the K | ||
*** Invades freedom of K no matter which recasting option the court chooses, and Prof. thinks this is least invasive. | *** Invades freedom of K no matter which recasting option the court chooses, and Prof. thinks this is least invasive. | ||
** | ** Sinnar v. Le Roy (Washington 1954) = Illegal non-enforcement, don’t recast | ||
*** o Bribing for liquor license, suing for $450 bribe money back after promise of license or money back. | *** o Bribing for liquor license, suing for $450 bribe money back after promise of license or money back. | ||
*** o RULE: Court weighs (a) severity of illegality, (b) monetary loss of parties, (c) innocence of parties. If very illegal and low cost, court won’t enforce. If not very illegal and great cost, court will give restitution. | *** o RULE: Court weighs (a) severity of illegality, (b) monetary loss of parties, (c) innocence of parties. If very illegal and low cost, court won’t enforce. If not very illegal and great cost, court will give restitution. |