The concept of derogation of public policy implies that a contract will not be enforced...

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BlackTom AI · Accepted Answer

To tackle this question, I’ll examine what derogation of public policy means in contract law and evaluate each option against that concept.
Option 1: 'if either the promisor or promisee was drunk when the contract was signed' — While intoxication can affect the formation of a contract in some contexts, derogation of public policy does not center on drunkenness alone. Public policy concerns focus on the purposes and societal impact of the contract, not merely the state of intoxication of the parties at signing. Therefore, this option misstates the primary ground for non-enforcement under public policy.
Option 2: 'if the purpose of the contract was to circumvent a law' — This aligns with the classic idea of derogation of public policy: contracts that aim to evade or undermine the law or public interests are unenforceable. If the contract’s purpose is to circumvent legal norms, it runs contrary to public policy and would not be enforced. This option correctly identifies the public-policy-based reason for non-enforcement.
Option 3: 'if it was signed under necessity' — Contracts formed under necessity can be more complex; necessity can affect the voluntariness or enforceability in some doctrines, but it is not a standard ground for derogation of public policy. Necessity alone does not imply that the contract violates public policy; in fact, some necessities may be legally enforceable even if they are not ideal. This makes this option incorrect as a description of derogation of public policy.
Overall, option 2 accurately captures the concept: a contract whose purpose is to circumvent the law contravenes public policy and would not be enforceable, whereas the other options reflect different considerations that do not define derogation of public policy.

SU25 ECON 522 001 ZFF Self Quiz, Week 3 part 2

The concept of derogation of public policy implies that a contract will not be enforced...

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