Agreements against Public

Policy.
1. Agreements of trading with enemy.

2. Agreement to commit a crime.

3. Agreements interfering with administration of

justice.

4. Agreements in restraint of legal proceeding.

5. Trafficking in public offices and titles.

 Agreements against Public
Policy.
6. Agreements tending to create interest opposed to
public duty:-
which is against to his public policy or
professional duty.
7. Agreements in restraint of parental rights.
A father and mother , in the absence of any one ,
the other is the legal guardian of the child. No
parent can barter away from this right . No parent
can enter into any agreement which is against his
duty. No parent has the right to sell their child.
Case
A father having two minor sons
agreed to transfer their
guardianship in favour of Mrs.
Annie Besant and also agreed
not to revoke the transfer.
Subsequently, he filed a suit for
recovery of the boys and a
declaration that he was the
rightful guardian.
Agreements against Public
Policy.
8. Agreements restricting personal liberty.
Harwood (employee) wants to take loan from
Millers Timber and Trading Company (owner)
and the owner puts on the following conditions
which are unlawful practically:
You should not leave the job.
You should not borrow money from others.
You should not change your residence.
You should not sell your property.
 Agreements against Public
Policy.
9. Agreements in restraint of marriage.
Marriage is the right of every individual
and every
person has right to marry an one of their
choice.
EX. A boy tells a girl that he will marry her
but later marries another girl of his choice ,
in this situation the girl files a
case and wanted compensation of 2000
Agreements against Public
Policy.
10. Marriage brokerage agreements.
An agreement to procure bride or
groom for money is void.
A sum of money was agreed to be
paid to the father in consideration of
his giving his daughter in marriage.
Agreements against Public
Policy.
11. Agreements interfering with marital duties
A promise by a married person to marry,
during the life time after a death of spouse.
12. Agreements to defraud creditors or
revenue authorities
If any employee gets an allowance more than
the
actual expenses incurred , it is unlawful.
 Agreements against Public
Policy.
13. Agreements in restraint of trade.
Every person has freedom to do whatever
job/business/profession he wants provided its
lawful . if any person stops the other person
from doing such lawful business then it is
invalid.
EX. Both of them doing the same business
Madhav tells to raj “I’ll pay you money and
you close your business”.
Raj does not closes his business . Can
Madhav file a case on Raj .
Case
J, an employee of a company, agreed not to employ
himself in a similar concern within a distance of 800
miles from Madras after leaving the company’s
service.
A and B carried on business of braziers in a certain
locality in Calcutta. A promised to stop business in
that locality if B paid him Rs. 900 which he had paid
to his workmen as advances. A stopped his business
but B did not pay him the promised money.
13. Agreements in restraint
of trade.
Exceptions-
Sale of Goodwill
Partners agreements 54, 55(3) ).
A partner should not carry on the same business
as
that of the firm. ( sec. 11 (2) )
An outgoing partner may agree with the firm that
he
will not carry on the same business as that of
the firm in the specified area . (sec. 36 (2) )
13. Agreements in restraint
of trade.
Exceptions:-
Partners agreements
Partners may do anticipation of the dissolution of the
firm may agree among themselves that some
partners may not carry on the same business as that
of the firm within specified local area or for specified
time. (sec 54 )
 When the goodwill of the firm is sold any partner
may agree with the buyer that he will not carry on
the same business within specified local area. ( Sec
55.(3) )
Agreements in restraint of
trade.
Exceptions:-
Trade Combinations
Service Contracts
Void Agreements
Void agreement is one which is not
enforceable by law (Sec. 2 (g) )
Void Agreements are
1.Agreement by incompetent parties (Sec.11 )
2.Agreement made under a mutual mistake of
fact (Sec.20 )
3.Illegal agreements. (Sec. 24 )
4.With out consideration. ( Sec. 25)
5.Restraint of marriage.( Sec. 26 )
Void Agreements are

6. Restraint of trade.(Sec. 27)

7. Restraint of legal proceedings.(Sec. 28)
8. Uncertain agreements.(Sec. 29)
9. Wagering agreements.(Sec.30)
10.Contingent on Impossible events (Sec. 36)
11.Impossible agreements.(Sec.56)
Agreements the meaning
of which is uncertain [Sec.
29]
The uncertain may be
I. Existence of
II. Quantity of
III. Quality of
IV. Price of
V. Title to, the subject matter.
Agreements by way of
wager [Sec 30]:
Wager means betting . wagering agreement means
where one person promises to pay money or money’s
worth on the happening of uncertain event while the
other promises to pay if the event does not happen.
Examples: A and B bet as to whether it would rain on a
particular day or not A promising to pay Rs. 100 to B if
it rained, and B promising an equal amount to A, if it
did not. This agreement is wager.
Wagering Agreement Void and not Illegal
Essentials of wager
There must be a promise to pay money
or money’s worth.
The event must be an uncertain one.
Each party must stand to win or lose
under the terms of agreement.
No control over the events.
No other interest in the event.
Agreements by way of
wager [Sec 30]:
Exceptions
Transactions for the sale and
purchase of stocks and shares.
Prize competitions which are
games of skill, e.g., picture puzzles,
athletic competitions.
A crossword competition is not a
wager since it involves skill
Agreements by way of
wager [Sec 30]:
Exceptions
4.Contracts of Insurance. Contracts of insurance are not
wagering agreements even though the payment of money
by the insurer may depend upon a future uncertain event.
Contracts of insurance differ from the wagering agreements
in the following respects:
(a) It is only person possessing an insurable interest that is
permitted to insure life or property, and not any person, as
in the case of a wager.
Agreements by way of
wager
Exceptions [Sec 30]:
(b) In the case of fire and marine insurance, only the
actual loss suffered by the party is paid by the company,
and not the full amount for which the property is insured.
Even in the case of life insurance, the amount payable is
fixed only because of the difficulty in estimating the loss
caused by the death of the assured in terms of money, but
the underlying idea is only indemnification.
(c) Contracts of insurance are regarded as beneficial to the
public and are, therefore, encouraged.