Book Opener

l How to explain thelegal doctrine ofpublic policyl How to identifyagreements that arecontrary to publicpolicyl How to identifycontracts that involvean unreasonablerestraint of tradel How to explain thenature of a restrictivecovenantAgreements Contraryto Public PolicyThe Nature of Public PolicyNot all illegal agreements directly violate statutory law. Someagreements are illegal because they violate a time-honored legal doctrineknown as public policy.The ability to regulate the health, safety, welfare, and morals of thepublic is a power that belongs to the government. The states have thispower because they possess legitimate governmental authority. The federalgovernment has this ability because of various interpretations ofthe U.S. Constitution. The underlying principle that nobody should getBy understanding publicpolicy and contracts thatare contrary to publicpolicy, you will be able toavoid common problemsassociated with violationsof this important legaldoctrine.l restraint of tradel restrictive covenantl price fixingl competitive biddingAGREEMENTS TO DEFEAT COMPETITIVE BIDDINGThe principle of public policy makes agreements to defeatcompetitive bidding unenforceable. What considerations mighthave motivated lawmakers to outlaw agreements to defeatcompetitive bidding?194 Unit 2: Entering Into Contracts