Contracts That Are Binding in Honour Only but Attempt to Oust
Contracts that are binding in honour only but attempt to oust the jurisdiction of the Courts are valid.
A clause in a contract referring disputes to arbitration instead of the courts is valid.
In which of the following cases did the court decide that an agreement not to report the commission of an indictable offence was illegal at common law and therefore void?
A) Yango Pastoral Company Pty Ltd v First Chicago Australia Ltd  HCA 42.
B) Public Service Employees Credit Union Cooperative Ltd v Campion (1984) 56 ACTR 39.
C) St John Shipping Corporation v Joseph Rank Ltd  1 QB 267.
D) Nordenfelt v Maxim Nordenfelt Guns and Ammunition Company Ltd  AC 535.
A clause in a contract which provides that the courts may not be used to resolve any disputes between the parties is:
A) Void at common law.
B) Illegal at common law.
C) Referred to as a 'restraint of trade' clause.
D) By its very nature incapable of being enforced by the courts.