Chapter 88

COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH. 88 UNLA WFUL CONT RACTS 1CHAPTER 88 UNLA WFUL CONTRACTS § 88101. What is Unlawful. § 88102. Certain Contract Unlawful. § 88103. Contract Fixing Damages. § 88104. Exceptions. § 88105. Contracts in Restraint of Trade. § 88106. Exception: Sale of Good Will. § 88107. Exception: Partnership Agreement. § 88108. Restraint of Marriage V oid. § 88101. What is Unlawful. That is not lawful which is: 1. Contrary to an express provision of law; 2. Contrary to the policy of express law , though not expressly prohibited; or , 3. Otherw ise contrary to good morals. SOURCE: CC § 1667. § 88102. Certain Contract Unlawful. All con tract 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 o f another , or violation of law , whether willful or negligent, are against the policy of the law . SOURCE: CC § 1668. NOTE: No 1970 Civil Code '1669 existed. § 88103. Contract Fixing Damages. Every contract by which the amount of damage to be paid, or ot her compen sation to be made, for a breach of an obligation, is deter mined in antici pation thereof, is to that

ontract Fixing Damages. Every contract by which the amount of damage to be paid, or ot her compen sation to be made, for a breach of an obligation, is deter mined in antici pation thereof, is to that extent void, except as expressly provided in the next section. SOURCE: CC § 1670. COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH. 88 UNLA WFUL CONT RACTS 2§ 88104. Exceptions. The parties to a contract may agree t herein on 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 impractica ble or extremely difficult to fix the actual damage. SOURCE: CC § 1671. NOTE: No 1970 Civil Cod e '1672 existed. § 88105. Contracts in Restraint of T rade. Every contract, by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, otherwise than is provided in the next two sections, is to that extent void. SOURCE: CC § 1673. § 88106. Exception: Sale of Good Will. One who sells the good will of a business may agree with the buyer to refrain from carrying on a similar business within a specified district, city , or a part thereof, so long as the buyer, or any p erson deriving

he good will of a business may agree with the buyer to refrain from carrying on a similar business within a specified district, city , or a part thereof, so long as the buyer, or any p erson deriving title to the good will from him, carries on a like business therein. SOURCE: CC § 1674. COURT CASES: See Shelton v . Guam Service Games, 239 F .2d 902 (CA 9 1956). § 88107. Exception: Partnership Agreement. Partners may , upon or in anticipa tion of a dissolution of a partner ship, agree that none of them will carry on a similar business within the same city or town where the partner ship busi ness has been transacted, or within a specified part thereof. SOURCE: CC § 1675. § 88108. Restraint ofMarriage V oid. Every contract in restraint of marriage and any person, other than a minor , is void. SOURCE: CC § 1676. NOTE: No 1970 Civil Code '§ 1677 -1681 existed. ----------COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH. 88 UNLA WFUL CONT RACTS