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Contracts: Cases and Materials
Resource 3 . 29
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Sternaman v. Metropolitan Life Ins. Co.

Kessler, Gilmore & Kronman,
Lawrence Lessig

STERNAMAN v. METROPOLITAN LIFE INS. CO., 170 N.Y. 13, 62 N.E. 763 (1902), Vann, J.: "The power to contract is not unlimited. While, as a general rule, there is the utmost freedom of action in this regard, some restrictions are placed upon the right by legislation, by public policy, and by the nature of things. Parties cannot make a binding contract in violation of law or of public policy. They cannot in the same instrument agree that a thing exists, and that it does not exist, or provided that one is the agent of the other, and at the same time, and with reference to the same subject, that there is no relation of agency between them. They cannot bind themselves by agreeing that a loan in fact void for usury is not usurious, or that a copartnership which actually exists between them does not exist. They cannot by agreement change the laws of nature or of logic, or create relations, physical, legal, or moral, which cannot be created. In other words, they cannot accomplish the impossible by contract."

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