Bennett v. Hayes

Brief Fact Summary.

Bennett sued Hayes for breach of an oral contract.

Synopsis of Rule of Law.

If a contract that is formed violates the law in any way, the contract is void.

Facts.

Bennett and Hays entered into an oral agreement for repairs to be done to Bennett’s car at Hayes’ auto repair shop. The parties agreed on a total price of $187 but Hayes informed Bennett that he would have to increase the price by $200 to repair the vehicle. Ultimately, Hayes sent Bennett a bill for $500, which Bennet refused to pay. The trial court held the contract was illegal and thus unenforceable because there was no written estimate for the cost of repairs, in violation of a California statute.

Issue.

Whether if a contract that is formed violates the law in any way, the contract is void.

Held.

Yes. If a contract that is formed violates the law in any way, the contract is void.

Dissent.

Yes. If a contract that is formed violates the law in any way, the contract is void.

Discussion.

Because the defendant agreed to repair the plaintiff’s car without providing written estimate of the cost of repairs as required by statute, the contract is illegal and void. Allowing the plaintiff to recover would contradict that statute’s purpose to deter the formation of illegal contracts.