Question

From the four answers given, shade the appropriate answer.

A contract contravening public policy is void. There cannot be a general definition of public policy. Which of the following is a correct derivation from the above?

Options

• There cannot be a general definition of contract

• Since public policy is uncertain, contract is also uncertain

• The impact of public policy on the contract is to be judged in individual cases

• None of the above.

Answer 1

The impact of public policy on the contract is to be judged in individual cases

Explanation:

Sec. 23 of the Indian Contract Act, 1872. The rule of law, applicable to this class of cases, is, that all agreements which contravene the public policy are void, whether they be in violation of law or of morals,  or tend to interfere with those artificial rules which are supposed by the law to be beneficial to the interests of society or obstruct the prospective objects flowing indirectly from some positive legal injunction or prohibition.