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

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<strong>Contracts</strong> <strong>in</strong> Restra<strong>in</strong>t <strong>of</strong> Trade 57But the justification advanced <strong>in</strong> the Tailors <strong>of</strong>Ipsivich case 13 is <strong>in</strong> more picturesque, seventeenthcenturyterms: "At the common law no man couldbe prohibited from work<strong>in</strong>g <strong>in</strong> any lawful trade, forthe law abhors idleness the mother <strong>of</strong> all evil . . .and especially <strong>in</strong> young men who ought <strong>in</strong> theiryouth ... to learn sciences and trades which arepr<strong>of</strong>itable to the Commonwealth, and where<strong>of</strong> theymight reap the fruit <strong>in</strong> their old age . . . ; andtherefore the common law abhors monopolies whichprohibit any from work<strong>in</strong>g <strong>in</strong> any lawful trade."<strong>The</strong> court if it is satisfied that the restra<strong>in</strong>t wasreasonably necessary to protect the <strong>in</strong>terest <strong>of</strong> thepromisee and was not <strong>in</strong>imical to the <strong>in</strong>terests <strong>of</strong> theState, will treat it as valid. Section 21 <strong>of</strong> the RestrictiveTrade Practices Act, 1956, is <strong>in</strong> l<strong>in</strong>e with thecommon law tradition. It enacts that all registrable,restrictive agreements with<strong>in</strong> the Act are presumed tobe contrary to the public <strong>in</strong>terest unless and untilthey are justified <strong>in</strong> manner described by the Act.In giv<strong>in</strong>g effect to the forego<strong>in</strong>g pr<strong>in</strong>ciples govern<strong>in</strong>gcontracts on restra<strong>in</strong>t <strong>of</strong> trade the courts have hadto surmount many difficulties. <strong>The</strong> first and obviousone is the difficulty <strong>of</strong> def<strong>in</strong><strong>in</strong>g what is meant bypublic policy. As is so <strong>of</strong>ten the case, it is mucheasier to say what it is not than what it is. "Certa<strong>in</strong>specific classes <strong>of</strong> contracts," observed Asquith L.J.<strong>in</strong> 1951, ll "have been ruled out by authority to becontrary to the policy <strong>of</strong> the law, which is, <strong>of</strong> course,13(1615) 11 Co.Eep. 53b." In Monklands v. Jack Barclay, Ltd. [1951] 2 K.B. 252, 265.H.I. 5

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