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Topic 2: AGREEMENTS OPPOSED TO PUBLIC POLICY

An agreement which tends to promote corruption or injustice or is against the interest of the public is considered to be opposed to public policy.
These are certain agreements that are opposed to public policy and hence unenforceable or void:
1. Trading with enemy: Trading with enemy is clearly against public policy. Besides, it is against national honour to indulge in such acts in times of national emergencies.
2. Stifling prosecutions: It is in public interest that criminal should be prosecuted and punished, to compromise a prosecuted and punished, to compromise a prosecution is illegal and void. It is not open to the parties to take the administration of justice out of the hands of the authorities.
For example: A police officer was bribed by an accused for withdrawing criminal proceeding instituted that it is against law the agreement is invalid.



3. Maintenance and Champerty: Maintenance’ may be defined as an agreement whereby a person promises to maintain a suit in which he has no interest. ‘Champerty’ is an agreement whereby a person agrees to assist another in litigation in exchange of promise to handover a position of the proceeds of the action.
For example: ‘Rajesh agrees to pay Siya Rs 5,000 if Siya sue Krishna. This is an agreement of maintenance between Rajesh and Siya, which is opposed to public policy.
Krishna owes Rajesh Rs 30,000 as debt. Rajesh agrees to pay Siya the official charges of litigation and also 50% of proceeds, if Siya files a case against Krishna, this is an agreement of Champerty.



4. Traffic relating to public offices: Agreements concerning the sale of public offices are bad as they promote corruption.
For example: ‘A’ paid ‘B’ a public servant a certain amount inducing him to retire from his service, this paving the way for ‘A’ to be appointed in his place. The agreement was held to be void.
5. Agreements tending to create interest opposed to duty: An agreement which tends to create an interest in favour of a person which would conflict with his duty is illegal on the ground that it is opposed to public policy.
For example: ‘A’ agrees to pay ‘B’, the colonel in the army, Rs. 50,000 if he will assist her brother to desert the army. The object of the agreement is opposed to public policy and agreement is void and illegal.



6. Marriage brocage agreements: It is an agreement whereby the person promises for reward to procure the marriage of another. Such agreements are void being against public policy.
For example: ‘A’ pays ‘B’ a stranger a certain sum of money to procure a wife for him, it is clearly against public policy.
7. Agreements tending to create monopolies: An agreement to create monopoly is void as opposed to public policy.
For example: In matter like selling of vegetables, flowers no exclusive rights are given.
8. Agreements to influence elections to public offices: Any agreement with voters tending to influence them by improper mean are invalid.
For example: ‘A’ promises ‘B’ the owner of a newspaper Rs. 500 in consideration of the publication false statement in regard to opposition candidate for election. The agreement in void.



9. Agreement in restraint of personal liberty: A contract which restricts the liberty of an individual is illegal.
For example: ‘A’ borrowed money from a money lender and agreed that he would not without the lender’s written consent leave his job, borrow money, dispose of his property or move from house. It was held that the contract was illegal as it unduly restricted the liberty of ‘A’.
10. Agreement interfering with marital duties: Agreements which interfere with the performance of marital duties are void as being opposed to public policy.
For example: An agreement to lend money to a woman in consideration of her getting a divorce and marrying the lender is void.



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