Schwinghammer’s Contract Rules Over Loans and Legal Stuff

==Preamble==
The purpose of this legislation is to create enforceable laws and guidelines around loans and contracts so the public and businesses will be informed on how the Judiciary will interpret such matters going forward. 
Generally, we want to allow the citizens of San Andreas to engage in the ability to establish contracts freely without oversight. There will be some basic requirements to be considered a contract, but no limitation on who can write one. There needs to be enforcement for failure to meet contract terms, as well as preventative measures against predatory contracts. Additional Case Laws and Amendments to these Legislations will be written when appropriate as cases are brought before the courts.
==Elements of a Contract==
In order to be considered a Valid Contract in San Andreas, the following criteria must be met.
# An Offer. One party desires something, and the other party can provide it.
# Acceptance. Both parties agree to the proposal.
# Consideration. The value that has been agreed upon.
# Awareness. The parties must be aware they are entering into a contract.
# Capacity. The parties must have the capacity to understand obligations, terms, and consequences of the contract prior to agreement.
Further to the above criteria, the contract must be Legal. A review of appropriate Case Laws may be able to help determine the Legality of the contract.
In addition to Legality, a contract cannot be Predatory in nature. Predatory contracts involve but are not limited to: the use of deception and fraud, manipulation using aggressive tactics, or taking unfair advantage of the other party's lack of understanding about contract terms. A simply unfair contract is not necessarily Predatory; Unconscionable and/or bad faith actions and behaviors must be proven. 
The determination whether a contract is Valid, Legal, or Predatory will fall to the Judiciary, who shall have unlimited scope and power on interpretation and enforcement of contracts.
==Contesting a Contract==
Contests to Contracts shall be heard in front of a member of the Judiciary, who may choose to delegate this authority. To be contested in the courts either party may file notice on the Civil Docket (or Civil Asset Forfeiture Docket, if applicable). A contest to a contract shall be filed either within 21 days of the acceptance date of the contract, or within 21 days of the alleged breach of the contract.
If a breach of terms of the contract is being contested, the contract clause(s) that have been violated shall be indicated in the court filing.
Contesting the legality or predatory nature shall include a brief summary of the argument. 
==Severability==
All Contracts in San Andreas shall be severable. If one or more terms in a contract are found to be unenforceable or illegal, and the principle nature of the contract has not been changed, the remainder of the contract shall remain in effect unless determined otherwise by a member of the Judiciary.
==Obligations to Contract Terms==
Terms and Conditions of Legal loans and contracts engaged in good faith shall have the protection of the law and be recognized as Valid by the Judiciary in San Andreas.
There shall be no recognized "General Terms" of loans or contracts in San Andreas other than those written explicitly within legislation.
==Multiple Creditors==
In a situation where multiple creditors are seeking assets due to any situation involving contracts signed, and there are insufficient funds to pay off all those creditors, the order of repayments shall be as follows:
* Purchase Money Lenders (Mortgages, Car Loans, etc)
* Unpaid Fines to the State
* Other Outstanding Creditors (Contracts)
* Beneficiaries and Spousal Claims (Wills)
* Any other lawful claim
Category:Legislation