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25 Agreements Opposed To Public Policy-1

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LIBEESH P C

Assistant professor in commerce


Department of commerce
TIPS CAS
Indian contract Act –
Agreements Opposed To Public Policy

Outcome
To understand the agreements opposed to public policy.
To analyze the agreements opposed to public policy.
AGREEMENTS OPPOSED TO PUBLIC POLICY

Public policy is that principle of law which holds that no citizen can lawfully do
that which has a tendency to be injurious to the public.

An agreement is said to be opposed to public policy when it is injurious to the


welfare of the society or it tends to prejudice the welfare of the society.
AGREEMENTS OPPOSED TO PUBLIC POLICY
1. Trading with an alien enemy
2. Agreement for stifling prosecution
3. Maintenance and Champerty
4. Agreement for sale of public offices and titles
5. Marriage brokerage agreements
6. Agreement in restraint of personal liberty
7. Agreement in restraint of parental rights
8. Agreements tending to create interest opposed to duty
9. Agreements interfering with marital duties
10. Agreements to vary the period of limitation
11. Agreements to defraud creditors or revenue authorities
12. Agreement tending to create monopoly
13. Agreement to commit a crime
AGREEMENTS OPPOSED TO PUBLIC POLICY
1. Trading with an alien enemy

All agreements made with an alien enemy are illegal on the


ground of public policy.
AGREEMENTS OPPOSED TO PUBLIC POLICY
2. Agreement for stifling prosecution

An agreement which seeks to absolve an offender of criminal liability or


excuse him from prosecution or to withdraw a criminal case pending
against him is known as an agreement stifling prosecution.
AGREEMENTS OPPOSED TO PUBLIC POLICY

3. Maintenance and Champerty

Any agreement which improperly promotes litigation isopposed to public


policy. Such agreements may be either maintenance or Champerty.
AGREEMENTS OPPOSED TO PUBLIC POLICY
4. Agreement for sale of public offices and titles

The agreements for the sale or trafficking in public offices or to obtain


public title like Padma Shree etc., are illegal on the ground of being
opposed to public policy.
AGREEMENTS OPPOSED TO PUBLIC POLICY
5. Marriage brokerage agreements

Agreements to procure marriages for reward, or agreement to pay money to


the parent or guardian of a minor in consideration of his consenting to give
the child in marriage, are void.
AGREEMENTS OPPOSED TO PUBLIC POLICY

6. Agreement in restraint of personal liberty

An agreement which unduly restricts the personal liberty of any person


is void on the ground of being opposed to public policy.
AGREEMENTS OPPOSED TO PUBLIC POLICY

7. Agreement in restraint of parental rights

An agreement which is inconsistent with the duties arising out of


such guardianship is void as being opposed to public policy.
AGREEMENTS OPPOSED TO PUBLIC POLICY
8. Agreements tending to create interest opposed to duty

An agreement with a public servant which obliges him to do


something which is inconsistent with his official duty, shall be void
as being opposed to public policy.
AGREEMENTS OPPOSED TO PUBLIC POLICY
9. Agreements interfering with marital duties

Any agreement which interferes with the performance of marital duties, it


is void.

For example, an agreement that the husband shall always live at the wife‟s
house was held to be void.
AGREEMENTS OPPOSED TO PUBLIC POLICY
10. Agreements to vary the period of limitation

Agreements, the object of which is to curtail or extend the period of


limitation prescribed by the law of limitation, are void.
AGREEMENTS OPPOSED TO PUBLIC POLICY
11. Agreements to defraud creditors or revenue authorities

The agreements, the object of which is to defraud the creditors or revenue


authorities are void as being opposed to public policy.
AGREEMENTS OPPOSED TO PUBLIC POLICY
12. Agreement tending to create monopoly

An agreement, the object of which is to create


monopoly is illegal and void as being opposed to public policy.
AGREEMENTS OPPOSED TO PUBLIC POLICY
13. Agreement to commit a crime

An agreement to indemnify a person against consequences of his


criminal act is void as opposed to public policy.

These act may be grouped under the following heads:


a) Agreements in restraint of marriage [Section 26].
b) Agreements in restraint of trade [Section 27].
c) Agreements in restraint of legal proceedings [Section 28].
Question
1. An agreement with a public servant which obliges him to do something which is
inconsistent with his official duty, shall be ……………. as being opposed to public policy.
Answer: void

2. An agreement which seeks to absolve an offender of criminal liability or excuse him


from prosecution or to withdraw a criminal case pending against him is known as
an……………………………
Answer: agreement stifling prosecution.

3. Agreements to procure marriages for reward, or agreement to pay money to the


parent or guardian of a minor in consideration of his consenting to give the child in
marriage, are….................
Answer: void
Question
4. Any agreement which interferes with the performance of marital duties, it
is……………………….
Answer: void

5. The agreements, the object of which is to defraud the creditors or revenue


authorities are ……………………………. as being opposed to public policy.
Answer: void

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