{"id":26899,"date":"2022-09-05T03:28:18","date_gmt":"2022-09-05T03:28:18","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/amjur\/contracts-sect-216.html"},"modified":"2022-08-25T11:47:50","modified_gmt":"2022-08-25T11:47:50","slug":"contracts-sect-216","status":"publish","type":"amjur","link":"https:\/\/reference.findlaw.com\/amjur\/contracts-sect-216.html","title":{"rendered":"Am Jur 2d &#8211; Contracts \u00a7 216"},"content":{"rendered":"<div class=\"leafpage\">\n<h2>III. Legality of Contracts, A. In General, \u00a7 216 &#8211; Legality of contracts, generally<\/h2>\n<p>In general, parties are free to contract as they see fit,[<a href=\"#fn1\" name=\"fn-ref1\">1<\/a>] on any terms regarding a subject matter in which they have an interest,[<a href=\"#fn2\" name=\"fn-ref2\">2<\/a>] provided that the contract does not impose obligations that are contrary to statute,[<a href=\"#fn3\" name=\"fn-ref3\">3<\/a>] public policy,[<a href=\"#fn4\" name=\"fn-ref4\">4<\/a>] or an established rule of the common law.[<a href=\"#fn5\" name=\"fn-ref5\">5<\/a>] Thus, the law recognizes and protects a broad freedom of contract[<a href=\"#fn6\" name=\"fn-ref6\">6<\/a>] and competent persons ordinarily have the utmost liberty of contracting,[<a href=\"#fn7\" name=\"fn-ref7\">7<\/a>] and may incorporate in their agreements any provisions that are not illegal or violative of public policy.[<a href=\"#fn8\" name=\"fn-ref8\">8<\/a>]<\/p>\n<p>The law looks with favor upon the making of contracts between competent parties upon valid consideration and for lawful purposes,[<a href=\"#fn9\" name=\"fn-ref9\">9<\/a>] and courts generally enforce private agreements between parties.[<a href=\"#fn10\" name=\"fn-ref10\">10<\/a>] In fact, out of respect for the freedom to contract, courts are hesitant to interfere with purely private agreements.[<a href=\"#fn11\" name=\"fn-ref11\">11<\/a>] Courts may not declare illegal a type of contract specifically authorized by the legislature.[<a href=\"#fn12\" name=\"fn-ref12\">12<\/a>] Indeed, given the strong commitment to the principle of contractual freedom, courts should hesitate to infer from a statutory clause granting specific permission to contract under certain circumstances a general prohibition against contracting under other circumstances.[<a href=\"#fn13\" name=\"fn-ref13\">13<\/a>]<\/p>\n<div class=\"feature-para-block\">\n<div class=\"feature-para-name\">Observation:<\/div>\n<p>A lawful cause[<a href=\"#fn14\" name=\"fn-ref14\">14<\/a>] or object[<a href=\"#fn15\" name=\"fn-ref15\">15<\/a>] is necessary to the existence of a contract.<\/p>\n<\/div>\n<div>\n<h2>All case links go to Westlaw and require login.<\/h2>\n<\/div>\n<p>  <a href=\"#fn-ref1\" name=\"fn1\" class=\"footnote-revlink\">1<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0003926&amp;refType=RP&amp;originatingDoc=&amp;serNum=2033514874\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Mendez, Jr. v. Hampton Court Nursing Center, LLC, 140 So. 3d 671 (Fla. 3d DCA 2014)\">Mendez, Jr. v. Hampton Court Nursing Center, LLC, 140 So. 3d 671 (Fla. 3d DCA 2014)<\/a>    <\/span>, review granted, <span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0003926&amp;refType=RP&amp;originatingDoc=&amp;serNum=2035099710\" rel=\"nofollow noopener\" target=\"_blank\" title=\"168 So. 3d 227 (Fla. 2014)\">168 So. 3d 227 (Fla. 2014)<\/a>    <\/span>; <span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000595&amp;refType=RP&amp;originatingDoc=&amp;serNum=2027515904\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Corwin v. DaimlerChrysler Ins. Co., 296 Mich. App. 242, 819 N.W.2d 68 (2012)\">Corwin v. DaimlerChrysler Ins. Co., 296 Mich. App. 242, 819 N.W.2d 68 (2012)<\/a>    <\/span>; <span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0004644&amp;refType=RP&amp;originatingDoc=&amp;serNum=2034239986\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Zachry Const. Corp. v. Port of Houston Authority of Harris County, 449 S.W.3d 98 (Tex. 2014)\">Zachry Const. Corp. v. Port of Houston Authority of Harris County, 449 S.W.3d 98 (Tex. 2014)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref2\" name=\"fn2\" class=\"footnote-revlink\">2<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000711&amp;refType=RP&amp;originatingDoc=&amp;serNum=2027224440\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Grand Master Contracting, L.L.C. v. Lincoln Apartment Management Ltd. Partnership, 314 Ga. App. 449, 724 S.E.2d 456 (2012)\">Grand Master Contracting, L.L.C. v. Lincoln Apartment Management Ltd. Partnership, 314 Ga. App. 449, 724 S.E.2d 456 (2012)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref3\" name=\"fn3\" class=\"footnote-revlink\">3<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0004644&amp;refType=RP&amp;originatingDoc=&amp;serNum=2011508550\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Pest Management, Inc. v. Langer, 369 Ark. 52, 250 S.W.3d 550 (2007)\">Pest Management, Inc. v. Langer, 369 Ark. 52, 250 S.W.3d 550 (2007)<\/a>    <\/span>; <span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000711&amp;refType=RP&amp;originatingDoc=&amp;serNum=2008183672\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Sylva Shops Ltd. Partnership v. Hibbard, 175 N.C. App. 423, 623 S.E.2d 785 (2006)\">Sylva Shops Ltd. Partnership v. Hibbard, 175 N.C. App. 423, 623 S.E.2d 785 (2006)<\/a>    <\/span>; <span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0007902&amp;refType=RP&amp;originatingDoc=&amp;serNum=2036448218\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Teodecki v. Litchfield Twp., 2015-Ohio-2309, 38 N.E.3d 355\">Teodecki v. Litchfield Twp., 2015-Ohio-2309, 38 N.E.3d 355<\/a>    <\/span> (Ohio Ct. App. 9th Dist. Medina County 2015).<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref4\" name=\"fn4\" class=\"footnote-revlink\">4<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000578&amp;refType=RP&amp;originatingDoc=&amp;serNum=2020947781\" rel=\"nofollow noopener\" target=\"_blank\" title=\"City of New Albany v. Cotner, 919 N.E.2d 125 (Ind. Ct. App. 2009)\">City of New Albany v. Cotner, 919 N.E.2d 125 (Ind. Ct. App. 2009)<\/a>    <\/span>; <span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0004645&amp;refType=RP&amp;originatingDoc=&amp;serNum=2035069696\" rel=\"nofollow noopener\" target=\"_blank\" title=\"In re Marriage of Traster, 301 Kan. 88, 339 P.3d 778 (2014)\">In re Marriage of Traster, 301 Kan. 88, 339 P.3d 778 (2014)<\/a>    <\/span>; <span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0007691&amp;refType=RP&amp;originatingDoc=&amp;serNum=2031496001\" rel=\"nofollow noopener\" target=\"_blank\" title=\"CAS Severn, Inc. v. Awalt, 213 Md. App. 683, 75 A.3d 382 (2013)\">CAS Severn, Inc. v. Awalt, 213 Md. App. 683, 75 A.3d 382 (2013)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref5\" name=\"fn5\" class=\"footnote-revlink\">5<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000104&amp;refType=RP&amp;originatingDoc=&amp;serNum=1934108269\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Wm. Lindeke Land Co. v. Kalman, 190 Minn. 601, 252 N.W. 650, 93 A.L.R. 1393 (1934)\">Wm. Lindeke Land Co. v. Kalman, 190 Minn. 601, 252 N.W. 650, 93 A.L.R. 1393 (1934)<\/a>    <\/span>.<br \/><\/span>  <span>\u00a0As to contracts in violation of constitutions, statutes, regulations, or ordinances, generally, see \u00a7\u00a7 <span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=140172&amp;refType=DA&amp;originatingDoc=&amp;cite=AMJURCONTRACTSS223\" rel=\"nofollow noopener\" target=\"_blank\" title=\"223\">223<\/a>    <\/span> to  <span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=140172&amp;refType=DA&amp;originatingDoc=&amp;cite=AMJURCONTRACTSS230\" rel=\"nofollow noopener\" target=\"_blank\" title=\"230\">230<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref6\" name=\"fn6\" class=\"footnote-revlink\">6<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0004644&amp;refType=RP&amp;originatingDoc=&amp;serNum=2025281828\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Nafta Traders, Inc. v. Quinn, 339 S.W.3d 84 (Tex. 2011)\">Nafta Traders, Inc. v. Quinn, 339 S.W.3d 84 (Tex. 2011)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref7\" name=\"fn7\" class=\"footnote-revlink\">7<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0003926&amp;refType=RP&amp;originatingDoc=&amp;serNum=2021222498\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Rodriguez v. Builders Firstsource-Florida, LLC, 26 So. 3d 679 (Fla. 4th DCA 2010)\">Rodriguez v. Builders Firstsource-Florida, LLC, 26 So. 3d 679 (Fla. 4th DCA 2010)<\/a>    <\/span>; <span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000578&amp;refType=RP&amp;originatingDoc=&amp;serNum=2025467476\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Guideone Ins. Co. v. U.S. Water Systems Inc., 950 N.E.2d 1236, 74 U.C.C. Rep. Serv. 2d 806 (Ind. Ct. App. 2011)\">Guideone Ins. Co. v. U.S. Water Systems Inc., 950 N.E.2d 1236, 74 U.C.C. Rep. Serv. 2d 806 (Ind. Ct. App. 2011)<\/a>    <\/span>; <span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0004645&amp;refType=RP&amp;originatingDoc=&amp;serNum=2030385870\" rel=\"nofollow noopener\" target=\"_blank\" title=\"In re Marriage of Matar and Harake, 353 Or. 446, 300 P.3d 144 (2013)\">In re Marriage of Matar and Harake, 353 Or. 446, 300 P.3d 144 (2013)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref8\" name=\"fn8\" class=\"footnote-revlink\">8<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000350&amp;refType=RP&amp;originatingDoc=&amp;serNum=1953116512\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Ard Dr. Pepper Bottling Co. v. Dr. Pepper Co., 202 F.2d 372 (5th Cir. 1953)\">Ard Dr. Pepper Bottling Co. v. Dr. Pepper Co., 202 F.2d 372 (5th Cir. 1953)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref9\" name=\"fn9\" class=\"footnote-revlink\">9<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000711&amp;refType=RP&amp;originatingDoc=&amp;serNum=1997221896\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Shuttleworth, Ruloff and Giordano, P.C. v. Nutter, 254 Va. 494, 493 S.E.2d 364 (1997)\">Shuttleworth, Ruloff and Giordano, P.C. v. Nutter, 254 Va. 494, 493 S.E.2d 364 (1997)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref10\" name=\"fn10\" class=\"footnote-revlink\">10<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000711&amp;refType=RP&amp;originatingDoc=&amp;serNum=1999163191\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Rollyson v. Jordan, 205 W. Va. 368, 518 S.E.2d 372 (1999)\">Rollyson v. Jordan, 205 W. Va. 368, 518 S.E.2d 372 (1999)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref11\" name=\"fn11\" class=\"footnote-revlink\">11<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0007185&amp;refType=RP&amp;originatingDoc=&amp;serNum=2022690026\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Stelluti v. Casapenn Enterprises, LLC, 203 N.J. 286, 1 A.3d 678, 61 A.L.R.6th 659 (2010)\">Stelluti v. Casapenn Enterprises, LLC, 203 N.J. 286, 1 A.3d 678, 61 A.L.R.6th 659 (2010)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref12\" name=\"fn12\" class=\"footnote-revlink\">12<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000104&amp;refType=RP&amp;originatingDoc=&amp;serNum=1935126972\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Rishel v. Pacific Mut. Life Ins. Co. of Cal., 78 F.2d 881, 131 A.L.R. 414 (C.C.A. 10th Cir. 1935)\">Rishel v. Pacific Mut. Life Ins. Co. of Cal., 78 F.2d 881, 131 A.L.R. 414 (C.C.A. 10th Cir. 1935)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref13\" name=\"fn13\" class=\"footnote-revlink\">13<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0004644&amp;refType=RP&amp;originatingDoc=&amp;serNum=2001963121\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Churchill Forge, Inc. v. Brown, 61 S.W.3d 368 (Tex. 2001)\">Churchill Forge, Inc. v. Brown, 61 S.W.3d 368 (Tex. 2001)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref14\" name=\"fn14\" class=\"footnote-revlink\">14<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000735&amp;refType=RP&amp;originatingDoc=&amp;serNum=1994239226\" rel=\"nofollow noopener\" target=\"_blank\" title=\"State v. Louis, 645 So. 2d 1144 (La. 1994)\">State v. Louis, 645 So. 2d 1144 (La. 1994)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p>  <a href=\"#fn-ref15\" name=\"fn15\" class=\"footnote-revlink\">15<\/a>  <span>\u00a0<span class=\"cite\">      <a href=\"https:\/\/1.next.westlaw.com\/Link\/Document\/FullText?findType=Y&amp;originatingContext=document&amp;transitionType=DocumentItem&amp;pubNum=0000661&amp;refType=RP&amp;originatingDoc=&amp;serNum=1995073915\" rel=\"nofollow noopener\" target=\"_blank\" title=\"City of Cut Bank v. Glacier County, 270 Mont. 355, 891 P.2d 1174 (1995)\">City of Cut Bank v. Glacier County, 270 Mont. 355, 891 P.2d 1174 (1995)<\/a>    <\/span>.<br \/><\/span><\/p>\n<p><b><a href=\"https:\/\/1.next.westlaw.com\/Document\/I47056e29b27b11d9815db1c9d88f7df2\/View\/FullText.html?originationContext=documenttoc&#038;transitionType=CategoryPageItem&#038;contextData=(sc.Default)\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Am Jur 2d Contracts\">Read this complete Am Jur 2d section on Westlaw<\/a><\/b><\/div>\n","protected":false},"parent":0,"menu_order":0,"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","_cloudinary_featured_overwrite":false},"class_list":["post-26899","amjur","type-amjur","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/reference.findlaw.com\/legal-api\/wp-json\/wp\/v2\/amjur\/26899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/reference.findlaw.com\/legal-api\/wp-json\/wp\/v2\/amjur"}],"about":[{"href":"https:\/\/reference.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/amjur"}],"wp:attachment":[{"href":"https:\/\/reference.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=26899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}