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Kinds of agreement opposed against public policy

Courtesy/By: Koushambi Sengupta | 2020-08-29 10:38     Views : 322

Kinds of agreement opposed against public policy

Introduction

An agreement is unlawful if the court regards it as ' opposed to public policy'. 

Public policy is an elusive concept. It has been described as an 'untrustworthy guide', 'unruly horse' etc. and therefore, the doctrine of public policy is generally governed by precedents.

Agreements opposed to public policy

The following are some of the agreement that is opposed to public policy- 

  1. Traffic in public offices- Any agreements for sale or transfer of public offices or appointments to public offices in consideration of money are illegal and is opposed to public policy.
  2. Agreements creating an interest opposed to duty- An agreement that creates conflict between duty and interest is illegal and void and is opposed to public policy.
  3. Agreements duly restraining personal liberty- Agreements which restrict personal liberty are opposed against public policy and thus void.
  4. Agreements interfering with parental duties- The authority of a guardian is to be exercised in the best interest of the child by public morals and values. Therefore, if the right of guardianship is removed or set aside by any agreement which is inconsistent with the duties arising out of such custody, such agreement is opposed against public policy and are void in nature.
  5. Marriage brokerage agreements-  These are agreements for the payment of money in consideration of procuring for another in marriage a husband or a wife. Such an agreement is illegal and void. Thus opposed to public policy.
  6. Miscellaneous cases-  Following agreements have also been held to be against public policy- 

  A) Agreements ' tending to create monopolies' are illegal and void

  B) Agreement to defraud revenue authorities is also illegal. For example, where there is an agreement that an employee will get expense allowance over expenses actually incurred along with salary is illegal.

  C) Agreement by money to induce a person to give evidence in a civil court is illegal.

The following are some of the agreements that are opposed to public policy in the English Law. 

A. Trading with an alien enemy- trading with the alien enemy is against public policy so far as it tends to aid the economy of the enemy country. Such agreements are illegal unless special permission is obtained from Government.

B. Agreements interfering with the course of justice- Agreement to interfere with the court of justice like an agreement not to disclose misconduct etc. are opposed to public policy.

C. Agreements for stifling criminal prosecution- Any agreement which seeks to prevent the prosecution of a guilty party is opposed to public policy and is void. If a person commits a crime, he has to be punished. The compromise of a public offence is illegal. The main objective of criminal law will be defeated is such acts, agreements or conducts are allowed.

D. Maintenance and Champerty- Maintenance means a person is maintained or taken care by providing money or through litigation where a third person has no interest. Champerty means an agreement to assist someone in litigation in exchange for a promise to hand over portions of proceeds of the action. It is opposed to public policy.

These are not void in Indian Law. It depends upon the facts of the case.

 

Courtesy/By: Koushambi Sengupta | 2020-08-29 10:38