Agreement That Violates Public Policy

Agreement That Violates Public Policy: What You Need to Know

Agreements are an essential part of our daily lives, whether we realize it or not. From employment contracts to rental agreements, we enter into various agreements with different individuals or organizations. However, not all agreements are enforceable, and some may violate public policy.

An agreement that violates public policy refers to a contract or agreement that goes against the fundamental principles of society. It may be detrimental to public welfare, morality, or safety. These agreements are considered invalid and unenforceable in a court of law.

Examples of Agreements That Violate Public Policy

1. Non-Compete Agreements

A non-compete agreement is an agreement between an employer and an employee that restricts the latter from working for a competitor after leaving the company. Although non-compete agreements are legal in many states, they may violate public policy if they are too restrictive or prevent individuals from making a living.

2. Waiving Your Right to Sue

Some agreements require individuals to waive their right to sue in exchange for a product or service. These agreements may be considered void if they violate public policy.

3. Unreasonable Restrictions on Free Speech

Agreements that restrict an individual`s freedom of speech or expression may be considered unenforceable if they violate public policy. For example, an agreement that prohibits an employee from expressing their political beliefs or engaging in peaceful protests may be considered invalid.

4. Contracts for Illegal Activities

Any agreement that involves illegal activities is considered invalid and unenforceable. For example, an agreement to engage in drug trafficking or prostitution is illegal and unenforceable.

Consequences of Violating Public Policy

If an agreement violates public policy, it may be considered void and unenforceable. This means that neither party can rely on the agreement to enforce their rights or obligations. The consequences of violating public policy may include:

– A court may refuse to enforce the agreement

– The parties may be subject to legal penalties

– The parties may face reputational damage

Conclusion

Agreements are an essential part of our lives, and it is crucial to understand when an agreement violates public policy. A contract that goes against the fundamental principles of society may not be enforceable in a court of law. If you are unsure whether an agreement violates public policy, it is advisable to seek legal advice before signing.

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