Freedom of contract prevails in an arm's length transaction between sophisticated parties such that courts generally may not relieve them of the consequences of their bargain. This right is not without limitation. Aside from the defenses relating to the circumstances surrounding the formation of a contract, a party may seek to avoid the consequences of an otherwise valid contract on the ground that it is void against public policy. Courts may void an agreement only upon balancing the public interests favoring invalidation of a term chosen by the parties against those served by enforcement of the clause and concluding that the interests favoring invalidation are stronger. Only a limited group of public policy interests has been identified as sufficiently fundamental to outweigh the freedom of contract, and courts regularly uphold agreements waiving statutory or constitutional rights.
Hochhauser v. Urban Off. Architecture, PLLC, NY Slip Op 04491 (2d Dep't July 22, 2026)
