The document discusses various types of agreements that are opposed to public policy and therefore cannot be enforced. It explains that agreements creating interest against duty, tending to create monopolies, to commit a crime, in restraint of parental rights, restricting personal liberty, or to defraud creditors are all considered void and unenforceable because they violate public policy. Specific examples are provided for agreements involving trading with enemies, traffic in public offices, maintenance and champerty, and agreements creating secret profits for agents.
The document discusses various types of agreements that are opposed to public policy and therefore cannot be enforced. It explains that agreements creating interest against duty, tending to create monopolies, to commit a crime, in restraint of parental rights, restricting personal liberty, or to defraud creditors are all considered void and unenforceable because they violate public policy. Specific examples are provided for agreements involving trading with enemies, traffic in public offices, maintenance and champerty, and agreements creating secret profits for agents.
Original Description:
Introduction to Agreements opposed to public policy
The document discusses various types of agreements that are opposed to public policy and therefore cannot be enforced. It explains that agreements creating interest against duty, tending to create monopolies, to commit a crime, in restraint of parental rights, restricting personal liberty, or to defraud creditors are all considered void and unenforceable because they violate public policy. Specific examples are provided for agreements involving trading with enemies, traffic in public offices, maintenance and champerty, and agreements creating secret profits for agents.
The document discusses various types of agreements that are opposed to public policy and therefore cannot be enforced. It explains that agreements creating interest against duty, tending to create monopolies, to commit a crime, in restraint of parental rights, restricting personal liberty, or to defraud creditors are all considered void and unenforceable because they violate public policy. Specific examples are provided for agreements involving trading with enemies, traffic in public offices, maintenance and champerty, and agreements creating secret profits for agents.
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Agreements Opposed to
Public Policy A presentation by Nabeela Ahmed 2 Contents
Agreements Opposed to Public Policy
Agreements Creating Interest Against Duty Agreements Tending to Create Monopolies Agreement to Commit a Crime Agreements in Restraint of Parental Rights Agreements Restricting Personal Liberty Agreement to Defraud Creditors
A presentation by Nabeela Ahmed
3 Agreements Opposed to Public Policy
An agreement which is opposed to “Public Policy” cannot be
enforced by either of the parties to it. Public Policy is the “Policy of the Law”. The question as to whether an agreement is opposed to public policy or not is to be decided on general principles only and not by considering the terms of any particular contract. The Courts ought to be very cautious in deciding a question of public policy. The doctrine must be applied with necessary variation. Each case has to be decided on its own facts. Some of the agreements which are opposed to public policy are briefly explained below with examples.
A presentation by Nabeela Ahmed
4 Agreements Opposed to Public Policy (Cont.)
Trading with Enemies
All trade with enemies is against public policy. Thus, it is unlawful and is void. However, if a contract is made during peace times and later on war breaks out, one of the two things may result, Either the contract is suspended or it stands dissolved depending upon the intention of the parties to contract. Traffic in Public Offices Agreements entered into for using corrupt influence in procuring Government jobs, titles or honours are unlawful and therefore are not enforceable. This is because, if such agreements are valid, corruption will increase and lead to inefficiency in public services. Example: A paid B, a public servant a certain sum of money inducing him to retire from service, this paving the way for A to be appointed in his place. The agreement was held to be void. A presentation by Nabeela Ahmed 5 Agreements Opposed to Public Policy (Cont.)
Maintenance and Champerty
Maintenance and champerty agreements are against public policy. So they are void. Maintenance agreements are those agreements whereby a person promises to maintain a suit in which he has no interest. Champerty agreement is one whereby a person agrees to share the results of litigation. The difference between maintenance and champerty agreements lies in their object. The object of maintenance agreement is to encourage or foment litigation, whereas the same in Champerty agreement is sharing the proceeds of the litigation. In England, both of these agreements are illegal and unenforceable. However, in India, only those agreements which appear to be made for purposes for gambling in litigation and for injuring or oppressing others, by encouraging unholy litigation, will not be enforced but not all maintenance and champerty agreements.
A presentation by Nabeela Ahmed
6 Agreements Creating Interest Against Duty If an agreement is entered into by a person whereby he is bound to do something which is against his public duty, the agreement is void on the ground of public policy. For e.g., an agreement by an agent to get secret profits shall be void as it is opposed to public policy. Similarly, an agreement by a Government servant for the purchase of land situated within his circle is illegal as opposed to public policy.
A presentation by Nabeela Ahmed
7 Agreements Tending to Create Monopolies Agreements tending to create monopolies are against public policy and hence are void. However, in matter like vegetables, monopoly rights can be given to one person excluding others.
A presentation by Nabeela Ahmed
8 Agreements to Commit a Crime
If in an agreement, the consideration is committing a
crime, the agreement is opposed to public policy and is void. Similarly, an agreement to indemnify a person against consequences of his criminal act is unenforceable being opposed to public policy.
A presentation by Nabeela Ahmed
9 Agreements to Defraud Creditors
An agreement which is made with an intention to defraud
the creditors or revenue authorities is not enforceable as it is opposed to public policy.