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

64 Curtailment of Freedom by the Courtsrestrictions imposed by the agreement would have aserious effect on the general level of employment inthe manufacturing area, that did not outweigh thedetriment to the public generally by the preservationof excess capacity in the industry resulting in wasteof national resources. " The court was required toact without certainty and on the balance of probabilitiesand to arrive at a general conclusion in theterms used by the Act "; but having on that balancereached a conclusion it declared the agreement to becontrary to the public interest and, therefore, itcould no longer be enforced.EXECUTIVE ARRANGEMENTSA substantial number of agreements or arrangementsin the nature of contracts are regarded by the courtsas falling rather within the category of executive actsor governmental directives than within the field ofenforceable contracts. The attitude of the judiciaryis that neither the Crown nor any other publicauthority can be held to an agreement that purportsto bargain away its fundamental discretionary powers." The principle is simply that in the last resort thelaw permits a governmental agency to fulfil thefundamental purposes for which it was created, eventhough so doing may involve interference with vestedcontractual rights which an individual may haveagainst that agency." 27a27a Per Professor J. D. B. Mitchell in Contract of PublicAuthorities, at p. 17.