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The Doctrine of Public Policy in Canadian Contract Law

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<strong>The</strong> <strong>Doctr<strong>in</strong>e</strong> <strong>of</strong> <strong>Public</strong> <strong>Policy</strong> <strong>in</strong> <strong>Canadian</strong> <strong>Contract</strong> <strong>Law</strong> 17<br />

until the eighteenth century."" As English society progressed, and the number<br />

<strong>of</strong> precedents and statutes began to swell, there was <strong>in</strong>creas<strong>in</strong>gly less need for<br />

a general, undef<strong>in</strong>ed idea <strong>of</strong> the "common good" to fill <strong>in</strong> the more glar<strong>in</strong>g<br />

"gaps" <strong>of</strong> the common law.34 It was <strong>in</strong> part because <strong>of</strong> this reality that <strong>in</strong> the<br />

eighteenth century the concept <strong>of</strong> public policy was first recognized as a dist<strong>in</strong>ct<br />

doctr<strong>in</strong>e <strong>in</strong> the case <strong>of</strong> Mitchel v. Reynolds.35 To be sure, public policy <strong>in</strong> the<br />

eighteenth century had yet to be ref<strong>in</strong>ed, and was still "a pr<strong>in</strong>ciple stated <strong>in</strong>.. .<br />

sweep<strong>in</strong>g terms."36 Yet its acceptance <strong>in</strong> this period as a conceptually discrete<br />

source <strong>of</strong> legal precedent, whatever its ultimate ambit, entailed that "[i]nstead<br />

<strong>of</strong> sprawl<strong>in</strong>g <strong>in</strong> vaporous fashion across the legal atmosphere like a genie <strong>of</strong> the<br />

Arabian Nights, it [was] shr<strong>in</strong>k<strong>in</strong>g to certa<strong>in</strong> departments <strong>of</strong> the law..."37<br />

In the n<strong>in</strong>eteenth century, the courts sought to conf<strong>in</strong>e the reach <strong>of</strong> the<br />

doctr<strong>in</strong>e to the limited number <strong>of</strong> categories which are discussed below. <strong>The</strong><br />

general judicial attitude <strong>of</strong> the period is summarized by the famous statement<br />

<strong>of</strong> Burrough J. <strong>in</strong> Richardson v. Mellish, that public policy "is a very unruly<br />

horse, and when once you get astride it you never know where it will carry<br />

you."" To similar effect were the follow<strong>in</strong>g sentiments expressed by Jesse'<br />

M.R. <strong>in</strong> Pr<strong>in</strong>t<strong>in</strong>g & Numerical Registry Co. v. Sampson:<br />

pit must not be forgotten that you are not to extend arbitrarily those rules which<br />

say that a given contract is void as be<strong>in</strong>g aga<strong>in</strong>st public policy, because if there<br />

is one th<strong>in</strong>g which more than another public policy requires it is that men <strong>of</strong> full<br />

age and competent understand<strong>in</strong>g shall have the utmost liberty <strong>of</strong> contract<strong>in</strong>g,<br />

and that their contracts when entered <strong>in</strong>to freely and voluntarily shall be held<br />

sacred and shall be enforced by Courts <strong>of</strong> Justice. <strong>The</strong>refore, you have this<br />

paramount public policy to consider — that you are not lightly to <strong>in</strong>terfere with<br />

this freedom <strong>of</strong> contract.39 [emphasis added]<br />

33 Cheshire, supra note.7, at 405. Although this view is concurred <strong>in</strong> by Knight, W<strong>in</strong>field,<br />

supra note 1 at 83-84, believes the doctr<strong>in</strong>e was narrowed as early as the 17th century.<br />

34 See W<strong>in</strong>field, supra note 1 at 84: "[c]ase law and statutes between them were [at this<br />

time] rapidly reduc<strong>in</strong>g to certa<strong>in</strong>ty what had been under the vague control <strong>of</strong> reason,<br />

convenience, and policy."<br />

35 (1711), 1 P. Wms. 181 (Ch. Div.) [Mitchel]. <strong>The</strong> association <strong>of</strong> Mitchel with the recognition<br />

<strong>of</strong> public policy as a dist<strong>in</strong>ct doctr<strong>in</strong>e is made by both Knight, supra note 2 at 210,<br />

and W<strong>in</strong>field, supra note 1 at 85.<br />

36 Cheshire, supra note 7 at 406.<br />

37 W<strong>in</strong>field, supra note 1 at 84.<br />

38 (1824), 2 B<strong>in</strong>g. 229 (Eng. C.P.) at 252. In Enderby Town Football Club v. Football Assn.<br />

Ltd. (1970), [1971] Ch. 591 (Eng. C.A.) at 606-607, Lord Denn<strong>in</strong>g replied to Burrough<br />

J. by stat<strong>in</strong>g that "[w]ith a good man <strong>in</strong> the saddle, the unruly horse can be kept <strong>in</strong> control.<br />

It can jump over obstacles. It can leap the fences put up by fictions and come down on<br />

the side <strong>of</strong> justice. . . It can hold a rule to be <strong>in</strong>valid even though it is conta<strong>in</strong>ed <strong>in</strong> a<br />

contract."<br />

39 (1875), L.R. 19 Eq. 462 (Eng. Rolls Ct.) at 465.

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