How does Texas law treat contracts that are contrary to public policy?

Prepare for the Texas Contract Law Exam. Study with engaging multiple choice questions, each with explanations. Get ready to excel in your Texas Contract Law Exam!

Under Texas law, contracts that are contrary to public policy are deemed unenforceable and void. This principle protects societal interests by ensuring that certain agreements, which could harm individuals, the community, or the state, are not legally recognized.

Public policy refers to the foundational principles that guide a society's laws and morals. Contracts that violate these principles—such as those involving illegal activities, restraint of trade, or agreements that would promote harm to the public—cannot be enforced.

Consequently, if a party attempted to enforce a contract that falls into this category, a court would refuse to uphold the contract, emphasizing that the legal system should not facilitate agreements that contravene community standards or ethical considerations.

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