lucid interval. 1. A brief period during which an insane person regains sanity sufficient to have the legal capacity to contract and act on his or her own behalf. [Cases: Mental Health 3.1, 371; Wills 37. C.J.S. Insane Persons § 211; Wills § 9.] 2. A period during which a person has enough mental capacity […]
A promise, usu. in a sale-of-business, partnership, or employment contract, not to engage in the same type of business for a stated time in the same market as the buyer, partner, or employer. • Noncompetition covenants are valid to protect business goodwill in the sale of a company. In other contexts, they are generally disfavored
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substantial-performance doctrine. The rule that if a good-faith attempt to perform does not precisely meet the terms of an agreement or statutory requirements, the performance will still be considered complete if the essential purpose is accomplished, subject to a claim for damages for the shortfall. • Under the Uniform Probate Code, a will that is
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lex loci celebrationis (leks loh-sI sel-[schwa]-bray-shee-oh-nis). [Latin “law of the place of the ceremony”] The law of the place where a contract, esp. of marriage, is made. • This law usu. governs when the validity of a marriage is at issue. Restatement (Second) of Conflict of Laws § 283(2) (1971).
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revocation (rev-[schwa]-kay-sh[schwa]n), n. 1. An annulment, cancellation, or reversal, usu. of an act or power. 2. Contracts. Withdrawal of an offer by the offeror. Cf. REPUDIATION(2); RESCISSION; REJECTION(1). [Cases: Contracts 19; Sales 22(2), 23(2). C.J.S. Contracts § 63; Sales§ 32.] 3. Wills & estates. Invalidation of a will by the testator, either by destroying the
unenforceable, adj. (Of a contract) valid but incapable of being enforced. Cf. VOID; VOIDABLE. [Cases: Contracts 138(1). C.J.S. Contracts §§ 280–281, 283–284, 290, 292, 300.]
A consideration that so offends societal norms as to be invalid. • A contract supported by immoral consideration is usu. voidable or unenforceable. — Also termed turpis causa. [Cases: Contracts 112. C.J.S. Contracts §§ 275–276.]
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mortgage clause. An insurance-policy provision that protects the rights of a mortgagee when the insured property is subject to a mortgage. • Such a clause usu. provides that any insurance proceeds must be allocated between the named insured and the mortgagee “as their interests may appear.” — Also termed mortgagee clause. See LOSS-PAYABLE CLAUSE; ATIMA.
limitation-of-remedies clause. A contractual provision that restricts the remedies available to the parties if a party defaults. • Under the UCC, such a clause is valid unless it fails of its essential purpose or it unconscionably limits consequential damages. Cf. LIQUIDATED-DAMAGES CLAUSE; PENALTY CLAUSE. [Cases: Contracts 114; Sales 418(6), 426. C.J.S. Contracts § 271; Sales
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public policy. 1. Broadly, principles and standards regarded by the legislature or by the courts as being of fundamental concern to the state and the whole of society. • Courts sometimes use the term to justify their decisions, as when declaring a contract void because it is “contrary to public policy.” — Also termed policy