Question

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

• A. There cannot be a general definition of contract
• B. Since public policy is uncertain, contract is also uncertain
• C. The impact of public policy on contract is to be judged in individual cases
• D. None of the above

Hint:

Undefined legal concepts like “public policy” require case-specific interpretation by courts.

Answer 1

The Correct Option is C

In legal studies, contracts that contravene public policy are considered void. The key issue here is the difficulty of defining "public policy" in a general sense, as it can vary greatly depending on the context and jurisdiction. Thus, a universal definition is not feasible. Instead, the impact of public policy on contracts must be assessed on a case-by-case basis within the legal system. This is why the correct derivation for understanding how public policy affects contracts is that the impact of public policy on contract is to be judged in individual cases. This approach allows for consideration of specific circumstances, ensuring that contracts are evaluated fairly and consistently with contemporary societal values and norms.