Page:United States Statutes at Large Volume 76A.djvu/219

–123– -123§ 1205. Executed and executory contracts An executed contract is one, the object of which is fully performed. All others are executory. CHAPTER 37—UNLAWFUL CONTRACTS Sec. 1241. 1242. 1243. 1244. 1245.

Unlawful defined. Contracts contrary to policy of law. Liquidated damages. Contracts in restraint of trade; partnership agreements. Contracts in restraint of marriage.

§ 1241. Unlawful defined That is not lawful which i s: (1) contrary to an express provision of law; (2) contrary to the policy of express law, though not expressly prohibited; or (3) otherwise contrary to good morals. § 1242. Contracts contrary to policy of law Contracts which have for their object, directly or indirectly, to exempt anyone from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent, are agamst the policy of the law. § 1243. Liquidated damages (a) Except as expressly provided in subsection (b) of this section, a contract by which the amount of damage to be paid, or other compensation to be made, for a breach of an obligation, is determined in anticipation thereof, is to that extent void. (b) The parties to a contract may agree therein upon an amount which shall be presumed to be the amount of damage sustained by a breach thereof, when, from the nature of the case, it would be impracticable or extremely difficult to fix the actual damage. § 1244. Contracts in restraint of trade; partnership agreements (a) Except as provided in subsection (b) of this section, contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is to that extent void. (b) Partners may, upon or in anticipation of a dissolution of the partnership, agree that none of them will carry on a similar business within the same city or town where the partnership business has been transacted, or within a specified part thereof. § 1245. Contracts in restraint of marriage A contract in restraint of the marriage of any person, other than a minor, is void. CHAPTER 39—EXTINCTION OF CONTRACTS BUBCHAPTEB I

GENERAL PROVISIONS

Sec. 1271. Extinguishment. SUBCHAFTEB n—BESCI88I0X

1291. 1292. 1293. 1294.

Extinguishment by rescission. Grounds for rescission. Stipulations against right to rescind. Procedure for rescission. SUBCHAPTER III—ALTEBATION AND CANCELLATION

1311. 1312. 1313. 1314. 1315.

Alteration of Terbal contract. Alteration of written contract. Destruction or cancellation by consent of parties. Destruction, cancellation, or alteration by beneficiary. Alteration or destruction of duplicate.

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