CONTRACTS AGAINST PUBLIC POLICY

KRS tit. XXX, ch. 372

in effect

KRS 372.005 Nonapplicability of chapter to legal gambling transactions

372.005. Nonapplicability of chapter to legal gambling transactions The terms and provisions of this chapter do not apply to betting, gaming, or wagering that has been authorized, permitted, or legalized, including, but not limited to, all activities and transactions permitted under KRS Chapters 154A, 230, and 238. Effective: July 14, 2000 History: Created 2000 Ky. Acts ch. 447, sec. 4, effective July 14, 2000.

KRS 372.010 Gambling transactions void

372.010. Gambling transactions void Every contract, conveyance, transfer or assurance for the consideration, in whole or in part, of money, property or other thing won, lost or bet in any game, sport, pastime or wager, or for the consideration of money, property or other thing lent or advanced for the purpose of gaming, or lent or advanced at the time of any betting, gaming, or wagering to a person then actually engaged in betting, gaming, or wagering, is void. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 1955.

KRS 372.020 Recovery of gambling losses from winner or his transferee

372.020. Recovery of gambling losses from winner or his transferee If any person loses to another at one (1) time, or within twenty-four (24) hours, five dollars ($5) or more, or anything of that value, and pays, transfers or delivers it, the loser or any of his creditors may recover it, or its value, from the winner, or any transferee of the winner, having notice of the consideration, by action brought within five (5) years after the payment, transfer or delivery. Recovery may be had against the winner, although the payment, transfer or delivery was made to the endorsee, assignee, or transferee of the winner. If the conveyance or transfer was of real estate, or the right thereto, in violation of KRS 372.010, the heirs of the loser may recover it back by action brought within two (2) years after his death, unless it has passed to a purchaser in good faith for valuable consideration without notice. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 1956.

KRS 372.030 Equitable relief against winner -- No penalty or forfeiture

372.030. Equitable relief against winner -- No penalty or forfeiture Any person entitled to recovery under KRS 372.020 may have discovery and relief in equity; but when such relief is obtained, the winner shall be discharged from all penalty and forfeiture for having won the money or other thing which, or the value of which, is so recovered back. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 1957.

KRS 372.040 Suit by third person where loser or creditor does not sue

372.040. Suit by third person where loser or creditor does not sue If the loser or his creditor does not, within six (6) months after its payment or delivery to the winner, sue for the money or thing lost, and prosecute the suit to recovery with due diligence, any other person may sue the winner, and recover treble the value of the money or thing lost, if suit is brought within five (5) years from the delivery or payment. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 1958.

KRS 372.050 Return of money or property held by stakeholder

372.050. Return of money or property held by stakeholder The stakeholder of any money or other thing staked on any bet or wager shall, when notified to do so, return the stake to the person who deposited it. If he fails to do so, the person aggrieved may recover from him the amount or value of the stake. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 1959.

KRS 372.060 Champertous contracts and conveyances void

372.060. Champertous contracts and conveyances void Any contract, agreement or conveyance made in consideration of services to be rendered in the prosecution or defense, or aiding in the prosecution or defense, in or out of court, of any suit, by any person not a party on record in the suit, whereby the thing sued for or in controversy or any part thereof, is to be taken, paid or received for such services or assistance, is void. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 209.

KRS 372.070 Sale of land adversely held -- Subjection to claims of judgment creditor

372.070. Sale of land adversely held -- Subjection to claims of judgment creditor (1) Any sale or conveyance, including those made under execution, of any land, or the pretended right or title thereto, of which any other person has adverse possession at the time of the sale or conveyance, is void; but this section does not render void any devise of land in adverse possession. (2) A judgment creditor, after a return on the execution of no property found, may file a petition in equity to subject any real estate to which the defendant has legal or equitable title even if the property is in the adverse possession of another. The person in possession shall be made a defendant in any such action. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 210.

KRS 372.080 Contract to recover land in adverse possession is void -- Right of action to vest in state

372.080. Contract to recover land in adverse possession is void -- Right of action to vest in state Any contract to prosecute an action for the recovery of any land in the adverse possession of another, for the whole or part of the land thus possessed, or for the whole or any part of the profits thereof, is void. The parties to the contract shall forfeit all right in and claim to the land, and all such rights and claims, and the right to maintain an action at law or in equity thereon, shall vest in the state, and inure to the benefit of the person in possession. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 211.

KRS 372.090 Champertous contract a defense in favor of adverse holder

372.090. Champertous contract a defense in favor of adverse holder The person in the adverse possession, his personal representatives, heirs or assigns, or the person under whom the person in adverse possession claims or holds, or his personal representatives, heirs or assigns, may give in evidence under a general denial, or may plead, the sale or purchase of any pretended right or title in violation of KRS 372.070, or any contract or agreement made in violation of KRS 372.080, in bar of any action against him to recover the possession or title to the land so held. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 212.

KRS 372.100 Parties to champertous contract may be required to testify -- Immunity from prosecution

372.100. Parties to champertous contract may be required to testify -- Immunity from prosecution Persons in possession, or the person under whom the occupant holds the land, may compel the parties to any such champertous contract to testify on the trial, or to make discovery by answer to petition in equity. The person so compelled to give evidence or to make discovery shall not be subjected thereby to any penal or criminal prosecution for champerty and maintenance, and the evidence or discovery shall not be used in any such prosecution. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 213.

KRS 372.110 Person in possession may purchase adverse claim

372.110. Person in possession may purchase adverse claim Persons in possession may purchase the adverse outstanding title or claim. The purchase shall be good and shall inure to the benefit of the person making it, or to the person under whom he claims and holds the land so possessed. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 214.

KRS 372.120 No right of action on champertous contract

372.120. No right of action on champertous contract Neither party to any contract made in violation of any of the provisions of KRS 372.060 to 372.120 shall have any right of action thereon. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 216.

KRS 372.130 Forfeitures not to apply to certain cases

372.130. Forfeitures not to apply to certain cases None of the forfeitures declared by KRS 372.060 to 372.120 apply to cases of controversy between lessor and lessee, mortgagor and mortgagee, vendor and vendee or trustee and beneficiary. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 215.

KRS 372.140 Power of attorney to confess judgment -- Release of errors

372.140. Power of attorney to confess judgment -- Release of errors (1) Except as provided in KRS 457.150, any power of attorney to confess judgment or to suffer judgment to pass by default or otherwise, and any release of errors, given before an action is instituted, is void. (2) No person shall appear for a defendant under any such power in any court in this state. Effective: July 14, 2018 History: Amended 2018 Ky. Acts ch. 185, sec. 28, effective July 14, 2018. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 416, 417.

KRS 372.160 Mailing that contains item that appears to be check -- Disclosure of consequences of signing -- Offer for contract formation not valid without disclosure -- Notice relating to time limit -- Delivery of goods or services does not form contract -- Remedies -- Jurisdiction

372.160. Mailing that contains item that appears to be check -- Disclosure of consequences of signing -- Offer for contract formation not valid without disclosure -- Notice relating to time limit -- Delivery of goods or services does not form contract -- Remedies -- Jurisdiction (1) Any term which is defined in the Uniform Commercial Code, KRS Chapter 355, shall have that same meaning in this section, unless the context otherwise requires. (2) Any person soliciting business in this Commonwealth who intends to make an offer for contract formation by sending through the mail, as part of the solicitation, what appears to be a check or other item payable to the recipient where the indorsement and subsequent negotiation of the item by the recipient is intended by any party to the item, or agent or assignee thereof, to form an acceptance of the contract shall make the following disclosure in upper case twelve (12) point bold face type immediately adjacent to the designated place of indorsement: "BY SIGNING AND DELIVERING THIS DOCUMENT YOU AGREE TO PAY FOR FUTURE SERVICES ARISING OUT OF THIS CONTRACT.". (3) A purported offer described in subsection (2) of this section that does not contain the required disclosure, to the extent a subsequent indorsement and negotiation of the item would otherwise constitute an acceptance, shall not be a valid offer for contract formation in this Commonwealth. (4) If a purported offer which meets the requirements in subsection (2) of this section relates to a free membership period, trial period, or some other similar acceptance incentive that is prescribed by a time limit and which purports to form a contract without a cancellation, rescission, revocation, or other form of termination by the recipient prior to the end of such a period, then the offeror shall send notice to the recipient at least two (2) weeks prior to the end of that time period of the recipient's purported obligation to cancel, rescind, revoke, or otherwise terminate the recipient's purported acceptance before a purported contract is formed. The notice shall be readily apparent on any communication from the offeror and it shall be in upper case twelve (12) point bold face type and in the following form: "YOU MUST ACT NOW TO AVOID FUTURE CHARGES." Any time period described under this subsection that is part of a purported offer described in subsection (2) of this section and that is less than two (2) weeks shall not be a valid offer for contract formation in this Commonwealth. (5) If a purported offer described in subsection (2) of this section does not contain the required disclosure, or is not followed by the required notice, then any goods or services delivered to the recipient pursuant to the purported offer shall not operate to form a contract by or between the offeror and the recipient. Any such offer or purported contract as a result thereof is void as against the public policy of the Commonwealth. (6) An attempt by an offeror, or an agent or assignee thereof, to enforce a purported contract or to bind a recipient to a purported acceptance arising out of a purported offer that does not comply with this section shall be a violation of the Consumer Protection Act, KRS 367.170 to 367.300. Remedies available for a violation of KRS 367.170 to 367.300 shall be in addition to any remedies available at common law or under this section. (7) The Attorney General, Commonwealth's attorneys, and county attorneys shall have concurrent jurisdiction to enforce the provisions of this section in a court of the county where the purported offer was received. (8) Any waiver by the recipient of jurisdiction for actions arising out of a purported offer under this section shall be void. Any depository bank or holder in due course of an item which does not meet the requirements of subsection (2) of this section or, as the case may be subsection (4) of this section, shall be held harmless by the offeror of the item, or an agent or assignee thereof. (9) Nothing contained in this section shall apply to licensed lenders that are regulated by the Commonwealth of Kentucky, or to a bank regulated by the federal government or any agency thereof. Effective: July 15, 2002 History: Created 2002 Ky. Acts ch. 216, sec. 1, effective July 15, 2002.

KRS 372.990 Penalties

372.990. Penalties Any person who violates any of the provisions of subsection (2) of KRS 372.140 shall forfeit one thousand dollars ($1,000) to the defendant, and shall be liable to damages at the suit of the party aggrieved. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 417, 418.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=39138Fetched: 10/20/2026