9-08 Unlawful and Voidable Contracts - North Dakota Statutes

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CHAPTER 9-08UNLAWFUL AND VOIDABLE CONTRACTS9-08-01. Provisions that are unlawful. Any provision of a contract is unlawful if it is:1.Contrary to an express provision of law;2.Contrary to the policy of express law, though not expressly prohibited; or3.Otherwise contrary to good morals.9-08-02. Contracts against the policy of the law. All contracts which have for theirobject, directly or indirectly, the exempting of anyone from responsibility for that person's own
fraud or willful injury to the person or property of another, or violation of law, whether willful or
negligent, are against the policy of the law.9-08-02.1. Contracts against liability for errors or omissions - Void. Any provision ina construction contract which would make the contractor liable for the errors or omissions of the
owner or the owner's agents in the plans and specifications of such contract is against public
policy and void.9-08-03. Penalties and penal clauses void. Penalties imposed by contract for anynonperformance thereof are void.9-08-04. Fixing damages for breach void - Exception. Every contract by which theamount of damages 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, except that the parties may agree
therein upon an amount presumed to be the damage sustained by a breach in cases in which it
would be impracticable or extremely difficult to fix the actual damage.9-08-05. Restricting enforcement of rights void. Every stipulation or condition in acontract by which any party thereto is restricted from enforcing that party's rights under the
contract by the usual legal proceedings in the ordinary tribunals or which limits the time within
which that party thus may enforce that party's rights is void, except as otherwise specifically
permitted by the laws of this state.9-08-06. In restraint of business void - Exceptions. Every contract by which anyoneis restrained from exercising a lawful profession, trade, or business of any kind is to that extent
void, except:1.One who sells the goodwill of a business may agree with the buyer to refrain from
carrying on a similar business within a specified county, city, or a part of either, so
long as the buyer or any person deriving title to the goodwill from the buyer carries
on a like business therein.2.Partners, upon or in anticipation of a dissolution of the partnership, may agree that
all or any number of them will not carry on a similar business within the same city
where the partnership business has been transacted, or within a specified part
thereof.9-08-07. In restraint of marriage void. Every contract in restraint of the marriage of anyperson, other than a minor, is void.9-08-08. Settlement of damages for personal injuries voidable. Every settlement oradjustment of any claim for relief for damages on account of any personal injuries received,
whether death ensues or not to the person injured, and every contract of retainer or employment
to prosecute such an action, is voidable if made within thirty days after the injury or if made whilePage No. 1the person so injured is under disability from the effect of the injury so received and within six
months after the date of the injury.9-08-09.Rescission of contract for damages for personal injuries.Any personsustaining personal injuries, or in case of the person's death, the person's personal
representative, may elect at any time within six months after the date of such injury to avoid any
settlement, adjustment, or contract made in connection therewith within the time mentioned in
section 9-08-08, by a notice in writing to that effect.The bringing of an action to recoverdamages for such injuries avoids any such settlement or adjustment. Whenever an action is
commenced within the period of time herein limited to recover such damages, the amount
received by the injured person, or the injured person's representative, in case of the injured
person's death, in any such settlement or adjustment is not a bar to the prosecution of the action
but may be set up as an offset or counterclaim to the amount of damages recoverable, if any, or
applied toward payment of any judgment recovered in any such action if such amount so
received by the injured person or the injured person's representative has not been pleaded
specifically as an offset or counterclaim.Page No. 2Document Outlinechapter 9-08 unlawful and voidable contracts