Contracts are used as legal documents to define and enforce obligations between parties in a variety of contexts. However, not all contracts are valid and enforceable under the law. Some contracts may violate public policy, rendering them unenforceable or legally invalid. Public policy is a set of laws and principles that govern the welfare, morals, and public interest of the community. In this article, we will discuss the types of contracts that may violate public policy.
Contracts that Violate Anti-Trust Laws
Anti-trust laws are designed to protect competition in the marketplace by prohibiting monopolies, price fixing, and other unfair business practices. Any contract that violates anti-trust laws can be considered as a violation of public policy. The Sherman Antitrust Act and the Clayton Antitrust Act are two of the major federal laws that govern anti-trust practices in the United States.
Contracts that Violate Labor Laws
Contracts that violate labor laws, such as those that discriminate against workers based on age, gender, race, or religion, are considered to be against public policy. Any contract that attempts to deprive an employee of their rights, such as minimum wage, overtime pay, workers` compensation, or safe working conditions, can be considered as a violation of public policy.
Contracts that Violate Environmental Laws
Contracts that violate environmental laws are considered as against public policy. Environmental laws are put in place to protect public health and the environment. Any contract that violates these laws, such as those that allow for toxic waste disposal or pollution of natural resources, can be deemed as a violation of public policy.
Contracts that Violate Government Contracts
Government contracts are subject to strict rules and regulations. Any contract that attempts to violate these rules is considered as a violation of public policy. Any contract that involves fraud, corruption, or bribery is also considered as a violation of public policy.
Contracts that Violate Human Rights
Contracts that violate human rights, such as those that involve forced labor or human trafficking, are considered to be against public policy. Any contract that attempts to deprive a person of their basic human rights is deemed as a violation of public policy.
Conclusion
Contracts are legal documents that define and enforce obligations between parties. However, not all contracts are valid and enforceable under the law. Any contract that violates public policy is considered as unenforceable or legally invalid. To ensure that your contracts are valid and enforceable, it is important to consult with an experienced attorney who can help you navigate the legal complexities of contract law.