Brief Fact Summary
Defendant agrees to purchase company from Plaintiff. Both parties are aware that the company is a manufacturer of drug paraphenalia. In order to purchase the company, Defendant signs some Promissory notes, payable to Plaintiff. Defendant fails to pay the notes. Plaintiff sues to enforce the notes. The court, in the interest of public policy, refuses to enforce the notes.

Rule of Law and Holding
A contract does not have to be illegal in order for a court to decline to enforce it. No statute existed against the manufacture of drug paraphenilia, but in the interest of public policy the court declines to enforce the contract. It is of note, that a state statute did grant the court the discretion to decline to enforce a contract in the interest of public policy.

Topics
Policing the Bargain

Subtopics
Public Policy