The Sanctity of Contracts in English Law - College of Social ...

36 Encroachments on Sanctity of Contractsunenforceable as many as five types of contracts,namely:1. Agreements between trade union members concerningconditions on which they should sellor not sell their goods, transact business oremploy or be employed;2. any agreement for the payment to a trade unionof any subscription or penalty;3. any agreement to apply the funds of a tradeunion to provide benefits to members, or tofurnish contributions to any person not amember for acting in conformity with the rulesor resolutions of the union, or to discharge anyfine imposed upon a person by a court of justice;4. agreements between one trade union and another;and5. any bond to secure performance of any of thefour foregoing types of contracts.The general effect of this enactment was describedby Fletcher Moulton L.J. in the celebrated Osbornecase 29 as follows: "... if the trade union . . .chooses to refuse to make any of the stipulatedpayments, neither the aggrieved party nor any otherperson can compel it to do so. The law refuses itsassistance in the matter, and thus in effect leaves itentirely at the option of the trade union whether itwill or will not fulfil its engagement. The onlydisability therefore under which a trade union or its29 Osborne v. Amalgamated Society of Railway Servants [1911]1 Ch. 540.