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Cards In This Set
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Gambling contract
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Agreement in which parties win or lose by chance
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Usury
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Charging higher rate of interest than the law allows
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Maximum contract rate
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Highest legal rate of interest
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Legal rate
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Interest rate applied when no rate specified
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Why must a contract be for a lawful purpose and achieved in a lawful manner?
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A contact must be for a lawful purpose and achieved in a lawful manner because if this were not true, the court might force one party to a contract to commit a crime.
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Does a contract that is void for illegality necessarily involve the commision of a crime?
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No. A contract void for illegality may consist merely of a private wrong.
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With regard to illegality of a contract, what is the difference between a divisible and an indivisible contract?
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If a contract is indivisible illegality in one part of it renders the whole contract invalid. If the contract is divisible the legal parts of the contract are enforceable.
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If the parties to a gambling contract give moey to a stakeholder with instructions to pay the money to the winner, what will the courts require the stakeholder to do?
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If the parties to a gambling contract give money to a stakeholder with instructions to pay the money to the winner courts will require the stakeholder to return each wagerer's deposit.
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In what ways are usurious contracts sometimes disguised?
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Usurious contracts are sometimes disguised by requiring the borrower to execute a note for an amount in excess of the actual loan or antedate the note so as to charge interest for a longer period than that agreed on.
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Why are most statutes making it illegal to operate certain types of businesses or professions without a license enacted?
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Most statutes making it illegal to operate certain types of businesses or professions without a license are enacted to protect the public from incompetent operators.
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Why are non-compete contracts that have restrictions that go further or longer than necessary to protect the buyer of the business unlawful?
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Noncompete contracts that have restrictions that go further or longer than necessary to protect the buyer of the business are unlawful because they burden the seller and because they deprive the business community and society in general of the benefit of the activities of the seller.
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What is the effect of a contract to divide up trade territory that affects interstae commerce?
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A contract to divide up trade territory that affects interstate commerce is declared illegal by the Sherman Antitrust Act or the Clayton Act.
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What are the consequences of a contract to seek a divorce for a consideration?
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A contract to seek a divorce for a consideration is void as against public policy.
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Under what circumstances will a contract that will obstruct our legal processes be void?
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Any contract that may obstruct our legal processes will be void when it has the tendency to obstruct justice even if justice is not actually obstructed.
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Illegal acts contracts
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If the performance of the act called for in the contract is illegal, the contract is void; or, if the act is legal but the means of carrying it out are illegal, the contract is void.
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