Title 53 — CONTRACTS

A contract provision contrary to an express provision of law or to the policy of express law, though not expressly prohibited or otherwise contrary to good morals, is unlawful. Source: CivC 1877, § 953; CL 1887, § 3577; RCivC 1903, § 1271; RC 1919, § 892; SDC 1939, § 10.0701.

Partners may, upon or in anticipation of a dissolution of the partnership, agree that none of them will carry on a similar business within the same municipality where the partnership business has been transacted or within a specified part thereof. Source: CivC 1877, § 961; CL 188…

Except as otherwise provided in § 53-9-11.2 , an employee may agree with an employer at the time of employment or at any time during employment not to engage directly or indirectly in the same business or profession as that of the employer for any period not exceeding two years f…

For purposes of § 53-9-11.2 , a practitioner means: (1) A physician licensed in accordance with chapter 36-4 ; (2) A physician assistant licensed in accordance with chapter 36-4A ; (3) A paramedic or emergency medical technician licensed in accordance with chapter 36-4B ; (4) A r…

Notwithstanding § 53-9-11 , a provision of a contract, entered into on or after July 1, 2023, is voidable if it restricts a practitioner, as defined in § 53-9-11 .1, from practicing or otherwise providing professional services in accordance with the applicable scope of practice, …

Any independent contractor who is an insurance producer as defined in subdivision 58-1-2(16) and is a captive agent who is not an independent agent and who works exclusively for a single insurance company or an affiliated group of insurance companies, even if the single insurance…

A provision in a contract is void and unenforceable if it in any way: (1) Coerces, compels, or attempts to compel a pregnant woman to undergo an abortion; (2) Results in a breach of any term of the contract if a pregnant woman refuses to undergo an abortion; or (3) Results in the…

Any contract: (1) In which the whole or any part of the contractual consideration is money or other valuable consideration, won or lost as a result of the outcome of any game of any kind, under any name or by any means; or (2) In which the contract is for the repayment of money o…

All contracts which have for their object, directly or indirectly, to exempt anyone from responsibility for his own fraud or willful injury to the person or property of another or from violation of law whether willful or negligent, are against the policy of the law. Source: CivC …

Penalties imposed by contract for any nonperformance thereof are void. This section does not void obligations penal in form such as heretofore have been commonly used, but it voids their penal clauses. Source: CivC 1877, § 955; CL 1887, § 3579; RCivC 1903, § 1273; RC 1919, § 894;…

Every contract in which amount of damage or compensation for breach of an obligation is determined in anticipation thereof is void to that extent except the parties may agree therein upon an amount presumed to be the damage for breach in cases where it would be impracticable or e…

Every provision in a contract restricting a party from enforcing his rights under it by usual legal proceedings in ordinary tribunals, or limiting his time to do so, is void. However, agreements to submit controversies to arbitration, as authorized by the Uniform Arbitration Act,…

Any contract provision which limits a party's time for enforcing his rights under a surety contract entered into prior to July 1, 1988, is hereby cured, legalized and validated as fully as if such contract provision had been entered into pursuant to §

Every contract in restraint of marriage of any person other than a minor is void. Source: CivC 1877, § 962; CL 1887, § 3586; RCivC 1903, § 1280; RC 1919, § 901; SDC 1939, § 10.0707.

Any contract restraining exercise of a lawful profession, trade, or business is void to that extent, except as provided by §§ 53-9-9 to 53-9-12 , inclusive. Source: CivC 1877, § 959; CL 1887, § 3583; RCivC 1903, § 1277; RC 1919, § 898; SDC 1939, § 10.0706; SL 2005, ch 254 , § 1.

Any person who sells the good will of a business may agree with the buyer to refrain from carrying on a similar business within a specified county, city, or other specified area, as long as the buyer or person deriving title to the good will from the seller carries on a like busi…