What Is Public Policy in Contract Law
Public policy is a concept in contract law that refers to the idea that contracts must align with the overarching goals and values of society. Contracts that violate public policy are generally considered invalid and unenforceable in court.
Public policy is a broad term that encompasses many different laws, regulations, and ethical principles. In general, public policy seeks to promote fairness, justice, and equality in society. It serves as a guide for lawmakers, judges, and other decision-makers, helping them to create and enforce laws that benefit society as a whole.
In contract law, public policy is an important consideration when assessing whether a contract is valid and enforceable. Generally speaking, contracts that violate public policy are considered unenforceable because they run counter to the public interest.
Examples of contracts that violate public policy might include agreements to commit unlawful acts, contracts that are unconscionably one-sided, or contracts that seek to evade legal obligations or responsibilities.
For example, a contract that requires one party to engage in criminal activity would violate public policy and be unenforceable. Similarly, a contract that seeks to limit a person`s freedom of speech or other basic rights might also violate public policy.
In addition to these more obvious examples, public policy can also be invoked in situations where a contract is deemed to be harmful or unfair to society. For instance, courts might consider a contract unenforceable if it restricts competition in a way that is harmful to consumers or if it allows one party to unfairly monopolize a particular market.
Overall, public policy is an important concept in contract law that helps to ensure that contracts are consistent with the values and goals of society. It serves as a check on unfair or harmful practices and helps to protect the rights of individuals and communities. As such, it is a crucial consideration for anyone involved in creating, negotiating, or enforcing contracts of any kind.
