New! H2O now has access to new and up-to-date cases via CourtListener and the Caselaw Access Project. Click here for more info.

Main Content

Contracts:

Note

Farber prompts questions from a student who asks whether the court’s invocation of “public policy” is rightly understood as judicial legislation.  This same student asks several follow up questions:  If a court may void a contract that doesn’t break the law, how are parties supposed to know in advance whether their contract will be enforced? Suppose a power company hires a contractor to build a coal-burning power plant and the contractor breaches. May a judge refuse to enforce the contract on the grounds that carbon pollution harms the public? If not, what principle can distinguish that case from Farber? If so, what limits, if any, should there be on the power of courts to void contracts as contrary to public policy?