Illegal Contracts

Some contracts are unenforceable in court because they are illegal or against public policy. For example, an agreement between two persons to sell illegal drugs could never be enforced in court.

In addition, courts sometimes find that a contract is so unfair, harsh, and oppressive that it should not be enforced. Such a contract is considered to be unconscionable.

Courts will usually not refuse to enforce a contract simply because it requires someone to pay a very high price for something. As noted earlier, the law allows for freedom of contract, and consumers are al­lowed to make bad deals as well as good ones. On rare occasions, though, a court may not enforce an extremely unfair contract (or the unfair clause in a contract).

A court is more likely to find a contract unconscionable when (1) the consumer is presented with a contract on a take–it–or–leave–it basis and (2) there is very uneven bargaining power between the parties (as when an experienced seller is dealing with an uneducated consumer).

Find the equivalents of the following words and expressions
in the text.

Устный контракт; обеспеченный правовой санкцией; закон поддерживает; заставить заключить контракт обманным путем; контракт, претензии по которому не могут быть заявлены в суде; незаконный контракт; несправедливый контракт; пункт контракта.

Answer the questions:

1. What are the main two types of contracts?

2. What kinds of contracts must be in writing to be enforceable?

3. Should courts enforce an oral agreement to buy a car? Give reasons.

4. Why does the law favors written contracts?

6. Why are some contracts are unenforceable in court? Give your examples.

7. What can the courts do if they find that a contract is unfair, harsh, and oppressive?

8. Will the courts refuse to enforce a contract because it requires someone to pay a very high price for something?

9. When is a court likely to find a contract unconscionable?

Problem–solving: