What is agreement opposed to public policy indian contract act?
Answers
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.
1. 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.
2. 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.
3. Stifling Prosecution :
An agreement in which one party agrees to drop criminal proceedings pending in a court in consideration of some amount of money, is unlawful. Therefore, such an agreement cannot be enforced except where crime is compoundable.
4. 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.
5. 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.
6. Marriage Brocage or Brokerage Agreements :
It is an agreement, in which, one or other parties to it or third parties, receive a certain money, in consideration of marriage. Such agreements being opposed to public policy are void.
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.
8. Agreement 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.
9. Agreements in Restraint of Legal Proceedings
10. Agreements in Restraint of Parental Rights :
For minor children, their father is the legal guardian and in his absence, their mother will be the legal guardian. A father by law is entitled to the custody of his minor child and so cannot enter into an agreement which is not consistent with his duties arising out of such custody. If such an agreement is made, it shall be void as it is against the public policy.
11. Agreements Restricting Personal Liberty :
Agreements restricting personal liberty of the parties to it are void as being opposed to public policy.
12. Agreements in Restraint of Marriage:
An agreement in restraint of the marriage of any person, other than a minor is void. Law does not make it compulsory for every person to marry. But if any person agrees not to marry at all it is opposed to public policy and is therefore void. Further, an agreement in which a person agrees not to marry a particular person is also void as it is against the public policy.
13. Agreements Interfering with Marital Duties :
Agreements interfering with marital duties are against the public policy and are void.
14. Agreement 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.
15. Agreement in Restraint of Trade :
By law, every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, is void to that extent.