Also known as:public policies · public-policy · ordre public
Written by attorneys · grounded in primary & secondary sources — see below
A principle that invalidates private agreements or arrangements conflicting with fundamental societal interests or statutory mandates. Courts apply the principle to refuse enforcement when the interest in upholding the arrangement is clearly outweighed by the policy against it. The principle protects public welfare rather than individual expectations.
Sources & Authorities· 16 primary sources
Select any source to read its text and confirm it supports the definition.
Cases
Uniform Acts
Model Codes
Common Law
Restatements
Casebooks
Course Outlines
Study Supplements
Dictionaries
How it applies
Common Examples
6
Landlord Self-Help Clause
Paige Porter leased commercial space to Pablo Perez under a written agreement that authorized Paige to change the locks and remove Pablo's property if rent fell overdue. State law provided only a judicial eviction remedy and preserved no self-help right for landlords. When Paige attempted self-help after a missed payment, Pablo sued to recover possession and damages. The court held the self-help clause void and unenforceable.
Express Risk Assumption
Patricia Patel signed a waiver before riding in Pierre Poulin's experimental vehicle prototype. The waiver stated that Patricia accepted all risk of injury from Pierre's negligent driving. During the ride Pierre drove recklessly and Patricia suffered serious harm. Patricia sued. The court refused to enforce the waiver because it shielded reckless conduct in a manner contrary to public policy.
Unlawful Trust Purpose
Pamela Phillips created a trust directing the trustee to pay monthly stipends to individuals convicted of political crimes so they could continue advocacy while imprisoned. The trust instrument contained no other beneficiaries or charitable purposes. Upon Pamela's death the trustee petitioned for instructions. The court refused to recognize the trust because its purpose violated public policy.
Equity Redemption Waiver
Pioneer Energy borrowed funds from Pacific Bank secured by a mortgage on its headquarters. The mortgage contained a clause stating that any default would convert the mortgage into an absolute deed with no right of redemption. After default Pacific Bank sought to quiet title under the clause. The court declared the clause void as an impermissible clog on the equity of redemption.
Servitude Interpretation
Precision Tools granted a servitude allowing Phoenix Technologies to park delivery trucks on a shared lot. The instrument contained ambiguous language that could be read to permit overnight storage of hazardous materials. Phoenix began such storage. Precision sued to enjoin the activity. The court adopted the narrower reading that avoided the public-policy violation of storing dangerous substances near neighboring properties.
Sham Marriage Collateral Term
Pilar Pena married Pablo Perez solely to obtain immigration status. Their written side agreement stated that neither would provide financial support or assume marital obligations. After the marriage Pilar sought spousal support when Pablo refused assistance. The court refused to enforce the side agreement because it contradicted the public policy requiring spouses to assume the usual obligations of marriage.
Common questions
Frequently Asked
6
How do courts decide whether a contract term violates public policy?+
Courts weigh the interest in enforcing the term against the strength of the policy against enforcement. They consider whether the policy is reflected in statutes or judicial decisions, whether refusal to enforce will further that policy, and whether the parties' justified expectations or any forfeiture would be undermined. When the policy against enforcement clearly predominates, the term is unenforceable.
Supporting sources
Does an agreement to assume the risk of reckless conduct ever survive public-policy review?+
No. An express agreement to accept the risk of reckless or negligent conduct is invalid when it contravenes public policy. The rule in Restatement (Second) of Torts § 496 B expressly carves out such agreements from the defense of assumption of risk.
When is a trust void for violating public policy?+
A trust is void to the extent its purposes are unlawful, contrary to public policy, or impossible to achieve. The trust must also be for the benefit of its beneficiaries. If any of these conditions fails, the trust terminates or never comes into existence.
Supporting sources
What mortgage provisions are void as clogging the equity of redemption?+
Any agreement that unreasonably restricts or waives the mortgagor's right to redeem before foreclosure is void. Examples include clauses converting the mortgage into an absolute conveyance or making redemption practically impossible. Such provisions violate the public policy protecting the mortgagor's redemption right.
Supporting sources
How should ambiguous servitudes be interpreted when public policy is implicated?+
A servitude should be interpreted to avoid violating public policy unless the purpose of the servitude itself violates policy or the parties' intent clearly requires a contrary reading. Among reasonable interpretations, the one more consonant with public policy is preferred.
Supporting sources
Are collateral agreements in a sham marriage enforceable?+
No. Agreements that contradict the usual obligations of marriage, such as promises not to provide support, are invalid as contrary to public policy even if the marriage itself is recognized. Courts refuse to enforce terms that undermine the marital relationship.
Supporting sources
may so frustrate distinct investment-backed expectations as to amount to a “taking.” There the claimant had sold the surface rights to particular parcels of property, but expressly reserved…
. 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…
Business Associations Corporations and LlcsFormation of organizations · Articles of organization; certificates of formationUBEIntermediate