15 U.S.C. § 80b–15 — Validity of contracts

submitted 86 years ago by ch. 686 to r/title-15-COMMERCE-AND-TRADE · 169 words · no verdicts yet

in plain englishAI-generated · not legal advice

Any contract clause that makes someone waive their rights under this law is void. Contracts that violate this law, or that require ongoing violations, are also void — at least against people who broke the law making them, or who knowingly took rights under them.

(a) Waiver of compliance as void. If a contract has a clause binding someone to waive their right to have this subchapter, or any rule, regulation, or order under it, followed — that clause is void. It has no legal effect. (b) Rights affected by invalidity. Two kinds of contracts are void. First, any contract made in violation of this subchapter. Second, any contract — made before or after this rule — whose performance means violating this subchapter, or continuing some practice that violates it, or a rule, regulation, or order under it. But this voidness only works against certain people: (1) someone who, while violating this subchapter, made the contract or carried it out; and (2) someone who wasn't a party to the contract but got rights under it while actually knowing the facts that made the contract illegal.

the actual law source: uscode.house.gov ↗public domain

(a) Waiver of compliance as void

Any condition, stipulation, or provision binding any person to waive compliance with any provision of this subchapter or with any rule, regulation, or order thereunder shall be void.

(b) Rights affected by invalidity

Every contract made in violation of any provision of this subchapter and every contract heretofore or hereafter made, the performance of which involves the violation of, or the continuance of any relationship or practice in violation of any provision of this subchapter, or any rule, regulation, or order thereunder, shall be void (1) as regards the rights of any person who, in violation of any such provision, rule, regulation, or order, shall have made or engaged in the performance of any such contract, and (2) as regards the rights of any person who, not being a party to such contract, shall have acquired any right thereunder with actual knowledge of the facts by reason of which the making or performance of such contract was in violation of any such provision.

Source credit: (Aug. 22, 1940, ch. 686, title II, § 215, 54 Stat. 856.)

history & why it existsrecord from the source credit

1940Enacted · Act of Aug. 22, 1940, ch. 686 · 54 Stat. 856

A history note hasn’t been published yet. The record shows enactment by ch. 686 on 1940-08-22.

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