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Question
Which of these types of agreements have been treated as "agreement against public policy" by various courts?
Which of these types of agreements have been treated as "agreement against public policy" by various courts?
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Solution
The correct option is C All the three
An agreement which is opposed to “Public Policy” cannot be enforced by either of the parties to it as per section 23 of the Contract Act. 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. Courts have developed the concept of 'contrary to public policy' on case to case basis. For example :
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.
Agreements entered into for using corrupt influence in procuring Government jobs, titles or honours are unlawful and therefore are not enforceable.In 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.
Agreements between enterprises engaged in identical or similar trade of goods or provision of services including cartels, are presumed to have appreciable adverse effect on competition and, therefore, are anti-competitive and void.
An agreement which is opposed to “Public Policy” cannot be enforced by either of the parties to it as per section 23 of the Contract Act. 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. Courts have developed the concept of 'contrary to public policy' on case to case basis. For example :
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.
Agreements entered into for using corrupt influence in procuring Government jobs, titles or honours are unlawful and therefore are not enforceable.
In 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.
Agreements between enterprises engaged in identical or similar trade of goods or provision of services including cartels, are presumed to have appreciable adverse effect on competition and, therefore, are anti-competitive and void.
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