Also known as:contrary to public policy · void for public policy
Written by attorneys · grounded in primary & secondary sources — see below
A principle that voids or renders unenforceable contractual provisions, delegations, trusts, waivers, or other legal arrangements when their enforcement would harm important societal interests or violate statutory commands.
Sources & Authorities· 6 primary sources
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Cases
Uniform Acts
Model Codes
Common Law
Restatements
Casebooks
Study Supplements
How it applies
Common Examples
6
Improper Delegation of Monitoring Duty
Andrew Avery contracts with Atlas Ventures to provide on-site environmental monitoring using only its own certified team. Andrew attempts to delegate the monitoring to an overseas vendor whose methods raise data-security risks. The court refuses to enforce the delegation because it contravenes the public policy reflected in the contract's insistence on personal performance.
Void Self-Help Lease Clause
Arthur Abrams leases a depot bay to Artemis Logistics. The lease authorizes Arthur to immobilize the tenant's vehicles upon holdover. State law supplies a speedy judicial remedy but does not preserve self-help. The court declares the self-help clause void because it violates public policy.
Invalid Exculpatory Waiver
Anita Ali signs a release before riding in Abigail Alvarez's experimental aircraft. The release purports to waive all claims for negligence. After a crash caused by the pilot's reckless maintenance, the court refuses to enforce the waiver because it contravenes public policy protecting against reckless conduct.
Unlawful Trust Purpose
Audrey Ashton creates a trust directing the trustee to pay beneficiaries only if they commit certain regulatory violations. The court holds the trust invalid at creation because its purpose is contrary to public policy and not for the beneficiaries' lawful benefit.
Clogged Equity of Redemption
Amber Alonzo mortgages property to Avalon Pharmaceuticals with a clause converting the mortgage into an absolute deed upon any default. The court voids the clause because it unreasonably restricts the mortgagor's right to redeem and therefore violates public policy.
Shareholder Agreement Within Policy Bounds
Astra Aerospace's three founders sign a unanimous written agreement reallocating major financing decisions to shareholders. A later investor challenges the pact. The court upholds the agreement because it satisfies statutory formalities and does not contravene public policy.
Common questions
Frequently Asked
6
When does a contractual delegation become unenforceable on public-policy grounds?+
A delegation is unenforceable when the contract expressly requires personal performance by the original obligor or when the substitution would undermine a substantial interest of the obligee that the law protects.
Supporting sources
Why are lease clauses authorizing landlord self-help sometimes void?+
When state law supplies a speedy judicial remedy for recovering possession from holdover tenants but does not preserve self-help, any contractual authorization of self-help is treated as contrary to public policy and unenforceable.
Under what circumstances is an express assumption-of-risk agreement unenforceable?+
An agreement by which a plaintiff accepts the risk of the defendant's negligent or reckless conduct is unenforceable when enforcement would violate public policy, such as when the conduct involves reckless disregard for safety.
Supporting sources
What renders a trust invalid at the time of creation?+
A trust is invalid if its purpose is unlawful, impossible to achieve, or contrary to public policy, or if the trust terms do not benefit the beneficiaries.
Supporting sources
What is clogging the equity of redemption and why is it prohibited?+
Clogging occurs when a mortgage provision unreasonably restricts or waives the mortgagor's right to redeem the property before foreclosure. Such provisions are void because they undermine the fundamental public policy protecting the mortgagor's redemption right.
Supporting sources
When may a unanimous shareholder agreement validly reallocate corporate powers?+
A unanimous written shareholder agreement may reallocate powers provided it satisfies statutory formalities and does not contravene public policy. The agreement remains effective among the original parties and the corporation even if it departs from default governance rules.
Supporting sources
. It held that the manufacturer and the dealer could not disclaim liability for personal injuries resulting from a defect in the automobile. It held that the provisions of the purchase order…
”). The court concluded that where a class-action waiver is found in an arbitration agreement in certain consumer contracts of adhesion, such waivers “should not be enforced.” Id. , at 163,…
and unenforceable because of its unreasonableness, and that he should be given his bequest free of the restriction. Daniel is 21 years of age, unmarried and a student at Youngstown State…
Business Associations Corporations and LlcsClose corporations and special control devices · Option or buy/sell agreementsUBEIntermediate