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Shanghai Electronics

The court must determine whether the written agreement between Inventor and Shanghai Electronics (SE) is void as against public policy and necessitates non-enforcement. To resolve this issue, the court must balance SE’s concerns for upholding the contract, with the countervailing public policy interest of preventing the use of inmate and child labor. Under the Restatement (Second) of Contracts §178, promises or other terms of an agreement can be found unenforceable, even when legislation does not provide it as such, if public policy clearly outweighs the factors favoring enforcement. Restatement (Second) of Contracts § 174 (1981). In deciding whether an agreement should be enforced, courts will take into account several factors: (1) the parties’ justified expectations, (2) any forfeiture that would result if enforcement were denied, and (3) any special public interest in the enforcement of a particular term. When deciding against the enforcement of a term the court will......


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Approximate Word Count: 843
Approximate Pages: 4 (250 words per double-spaced page)

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