Public Policy and Legal Principles

Study Notes

Defines law principles preventing actions potentially injurious to the public.
Broadly includes various government policies such as budgets, constitutions, and health policies.

Agreement with Alien Enemy:
- Involves trading with individuals from countries at war with one's own.
Agreement Interfering with Parental Rights:
- Agreements that eliminate parental rights are void.
- Example Case: In Annie Besant vs. Guddu Narayaniah, a parent reclaimed a child based on rights intersecting public policy.
Agreement Restraining Personal Freedom:
- Contracts that limit personal freedoms are void.
- Example: A loan conditioned on severe restrictions like not working.
Agreement for Sale of Public Office:
- Selling public titles or positions is against public policy and void.

Contracts must have both a lawful object (purpose) and lawful consideration (something in return).
Lawful objects are those permitted by law, while unlawful objects are prohibited.

Forbidden Object or Consideration:
- Contracts that include illegal elements render agreements void.
Fraudulent Object:
- Involves deceitful agreements.
Immoral Object and Consideration:
- Agreements that violate moral standards are void.
Interference with Justice:
- Involves agreements that inhibit proper judicial processes.
Monopoly Creation:
- Agreements designed to establish monopolistic control are prohibited.

Restraint of Marriage:
- Agreements preventing individuals from marrying are void.
Marriage Brokerage:
- Agreements for negotiating marriage in return for a fee conflict with individual freedom and public policy, rendering them void.
Administration of Justice:
- Agreements that hinder court processes, such as providing false testimony or preventing prosecution, are void.
- Example: A's agreement to remain silent about witnessing B committing a crime.

Allowance for certain contracts such as sale of goodwill, existing partner agreements, trade combinations, and sole-dealing agreements that do not conflict with public policy.

Public policy safeguards societal interests through laws that invalidate agreements deemed harmful or oppressive. Understanding these agreements is crucial for lawful conducting in both personal and business realms.

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