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Contracts That Might Be Deemed as Contrary to Public Policy

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Contracts are legally enforceable agreements that are critical to the operation of businesses. However, some contracts may violate public policy, making them unenforceable in court. Public policy refers to the moral and ethical rules that the society deems important to maintain the well-being of its citizens. As a professional, we will explore the concept of contracts that might be deemed as contrary to public policy.

Contracts that violate public policy can be divided into two categories: those that directly contravene the law and those that violate public policy indirectly. An example of a contract that directly contravenes the law is a contract for an illegal act like a drug deal. Such agreements cannot be enforced because they violate a fundamental rule of law. However, contracts that violate public policy indirectly may not be illegal but will still go against the moral and ethical principles that the society views as essential.

One example of a contract that violates public policy indirectly is a contract that creates a monopoly. Monopolies limit competition, restrict consumer choice, and often result in higher prices for consumers. Therefore, courts will not enforce contracts that create a monopoly because they go against the public interest.

Another example of a contract that violates public policy is a contract that waives liability for intentional harm or gross negligence. Such contracts are often used by businesses that want to protect themselves from liability in case of an accident or injury. However, courts will not enforce such contracts because they go against the public interest, which requires individuals and businesses to take responsibility for their actions.

Contracts that contain provisions that restrict an individual`s right to sue or access to the court system may also be deemed as contrary to public policy. These clauses prevent individuals from exercising their legal rights and can be seen as an attempt to avoid accountability for unethical or illegal behavior.

In conclusion, contracts are enforceable agreements, provided they do not violate public policy. Contracts that might be deemed as contrary to public policy are those that either directly contravene the law or go against the moral and ethical principles that the society views as essential. As a professional, it is essential to understand what makes a contract unenforceable, as this knowledge can help businesses avoid costly legal battles and protect themselves from violating public policy inadvertently.

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