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-
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.