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An example of a transaction which is an unenforceable contract is a contract for prostitution under English law. Prostitution is not actually a crime under English law, but both soliciting a prostitute and living off the earnings of a prostitute are criminal offences. [3] Yet so long as the contract is fully performed, it remains valid.
The oldest reported case relating to penalties appears to date from 1720, [2] but even that case is decided on the basis that penalties were already generally considered unenforceable. In their decision in Makdessi the Supreme Court reviewed the historical origins of the rule against penalty clauses in contracts. [ 5 ]
ProCD, Inc. v. Zeidenberg, 86 F.3d 1447 (7th Cir., 1996), was a court ruling at the United States Court of Appeals for the Seventh Circuit. [1] The case is a significant precedent on the matter of the applicability of American contract law to new types of shrinkwrap licenses that arose with home computing and the Internet in the 1990s, and whether such licenses are enforceable contracts.
Dunlop Pneumatic Tyre Co Ltd v New Garage & Motor Co Ltd [1914] UKHL 1 (1 July 1914) is an English contract law case, concerning the extent to which damages may be sought for failure to perform of a contract when a sum is fixed in a contract. It held that only if a sum is of an unconscionable amount will it be considered penal and unenforceable.
Callisher v Bischoffsheim (1869–70) LR 5 QB 449 is an English contract law case concerning consideration. It held that the compromise of a disputed claim made bonâ fide is a good consideration for a promise, even if it ultimately appears that the claim was wholly unfounded.
Wood v. Lucy, Lady Duff-Gordon, 222 N.Y. 88, 118 N.E. 214 (1917), is a New York state contract case in which the New York Court of Appeals held Lucy, Lady Duff-Gordon, to a contract that assigned the sole right to market her name to her advertising agent.
Amway Corp., [2] and consistent with a Ninth Circuit case, Douglas v. U.S. District Court ex rel Talk America [3] the court found that Blockbuster's arbitration provision was illusory and unenforceable, because there was nothing in the Terms and Conditions that would prevent Blockbuster from "unilaterally changing any part of the contract", "at ...
The distributors argued that the Amway has superior bargaining power and made this modification in the agreement unilaterally, making it a unconscionable contract of adhesion. The appeals court ruled in favor of the plaintiff and held that the arbitration agreement was illusory, lacking in consideration, and unenforceable. The District court ...