2022 Georgia Code
Title 13 - Contracts
Chapter 8 - Illegal and Void Contracts Generally
Article 1 - General Provisions
§ 13-8-2. Contracts Contravening Public Policy Generally

1. A contract that is against the policy of the law cannot be enforced. Contracts deemed contrary to public policy include but are not limited to:
   1. Contracts tending to corrupt legislation or the judiciary;
   2. Contracts in general restraint of trade, as distinguished from contracts which restrict certain competitive activities, as provided in Article 4 of this chapter;
   3. Contracts to evade or oppose the revenue laws of another country;
   4. Wagering contracts; or
   5. Contracts of maintenance or champerty.
2. A covenant, promise, agreement, or understanding in or in connection with or collateral to a contract or agreement relative to the construction, alteration, repair, or maintenance of a building structure, appurtenances, and appliances, including moving, demolition, and excavating connected therewith, purporting to require that one party to such contract or agreement shall indemnify, hold harmless, insure, or defend the other party to the contract or other named indemnitee, including its, his, or her officers, agents, or employees, against liability or claims for damages, losses, or expenses, including attorney fees, arising out of bodily injury to persons, death, or damage to property caused by or resulting from the sole negligence of the indemnitee, or its, his, or her officers, agents, or employees, is against public policy and void and unenforceable. This subsection shall not affect any obligation under workers’ compensation or coverage or insurance specifically relating to workers’ compensation, nor shall this subsection apply to any requirement that one party to the contract purchase a project specific insurance policy, including an owner’s or contractor’s protective insurance, builder’s risk insurance, installation coverage, project management protective liability insurance, an owner controlled insurance policy, or a contractor controlled insurance policy.
3. A covenant, promise, agreement, or understanding in or in connection with or collateral to a contract or agreement for engineering, architectural, or land surveying services purporting to require that one party to such contract or agreement shall indemnify, hold harmless, insure, or defend the other party to the contract or other named indemnitee, including its, his, or her officers, agents, or employees, against liability or claims for damages, losses, or expenses, including attorney fees, is against public policy and void and unenforceable, except for indemnification for damages, losses, or expenses to the extent caused by or resulting from the negligence, recklessness, or intentionally wrongful conduct of the indemnitor or other persons employed or utilized by the indemnitor in the performance of the contract. This subsection shall not affect any obligation under workers’ compensation or coverage or insurance specifically relating to workers’ compensation, nor shall this subsection apply to any requirement that one party to the contract purchase a project specific insurance policy or project specific policy endorsement.

History. Orig. Code 1863, § 2714; Code 1868, § 2708; Code 1873, § 2750; Code 1882, § 2750; Civil Code 1895, § 3668; Civil Code 1910, § 4253; Code 1933, § 20-504; Ga. L. 1970, p. 441, § 1; Ga. L. 1982, p. 3, § 13; Ga. L. 1989, p. 14, § 13; Ga. L. 1990, p. 1676, § 1; Ga. L. 2007, p. 208, § 1/HB 136; Ga. L. 2009, p. 231, § 1/HB 173; Ga. L. 2011, p. 399, § 2/HB 30; Ga. L. 2016, p. 205, § 1/HB 943.

The 2009 amendment, in subsection (a), substituted “that” for “which” in the first sentence of the introductory paragraph and, at the end of paragraph (a)(2), substituted “which restrict certain competitive activities, as provided in Article 4 of this chapter” for “in partial restraint of trade as provided for in Code Section 13-8-2.1”.

The 2011 amendment, effective May 11, 2011, in subsection (a), substituted “that” for “which” in the first sentence of paragraph (a)(1) and substituted “contracts which restrict certain competitive activities, as provided in Article 4 of this chapter” for “contracts in partial restraint of trade as provided for in Code Section 13-8-2.1” in paragraph (a)(2). See Editor’s notes for applicability.

The 2016 amendment, effective July 1, 2016, added subsection (c).

Cross references.

Contracts to defeat or lessen competition or to encourage monopoly, Ga. Const. 1983, Art. III, Sec. VI, Para. V.

Book, periodical, or newspaper tie-in sales, § 10-1-330 et seq.

Null and void nature of contracts between employer and employee whereby employer is exempted from liability to employee for negligence of employer or his other employees, as such liability is fixed by law, § 34-7-22 .

Void nature of agreement by individual to waive, release, or commute rights to benefits or any other rights under laws pertaining to employment security, § 34-8-250 .

Restriction on power of common carriers to limit liability, § 46-9-2 .

Editor’s notes.

Ga. L. 1990, p. 1676, § 2, not codified by the General Assembly, provides: “This Act takes effect on July 1, 1990. As a statement of public policy, this Act shall have general applicability to the fullest extent permitted by law. This Act shall further apply to all remedies sought or granted after the effective date with respect to the subject matter of this Act.”

Ga. L. 2007, p. 208, § 2, not codified by the General Assembly, provides: “This Act shall not be applied to impair any obligation of contract or agreement entered into prior to July 1, 2007, but this Act shall apply to any contract entered into, extended, or renewed on or after such date.”

Ga. L. 2009, p. 231, § 4, not codified by the General Assembly, provides that the 2009 amendment becomes effective on the day following the ratification at the time of the 2010 general election of an amendment to the Constitution of Georgia providing for the enforcement of covenants in commercial contracts that limit competition and shall apply to contracts entered into on and after such date and shall not apply in actions determining the enforceability of restrictive covenants entered into before such date and that if such amendment is not so ratified, then this amendment shall stand automatically repealed. The constitutional amendment (Ga. L. 2010, p. 1260) was ratified at the general election held on November 2, 2010.

Ga. L. 2011, p. 399, § 1, not codified by the General Assembly, provides: “During the 2009 legislative session the General Assembly enacted HB 173 (Act No. 64, Ga. L. 2009, p. 231), which was a bill that dealt with the issue of restrictive covenants in contracts and which was contingently effective on the passage of a constitutional amendment. During the 2010 legislative session the General Assembly enacted HR 178 (Ga. L. 2010, p. 1260), the constitutional amendment necessary for the statutory language of HB 173 (Act No. 64, Ga. L. 2009, p. 231), and the voters ratified the constitutional amendment on November 2, 2010. It has been suggested by certain parties that because of the effective date provisions of HB 173 (Act No. 64, Ga. L. 2009, p. 231), there may be some question about the validity of that legislation. It is the intention of this Act to remove any such uncertainty by substantially reenacting the substantive provisions of HB 173 (Act No. 64, Ga. L. 2009, p. 231), but the enactment of this Act should not be taken as evidence of a legislative determination that HB 173 (Act No. 64, Ga. L. 2009, p. 231) was in fact invalid.”

Ga. L. 2011, p. 399, § 5, not codified by the General Assembly, provides, in part, that the amendment to this Code section shall apply to contracts entered into on and after May 11, 2011, and shall not apply in actions determining the enforceability of restrictive covenants entered into before May 11, 2011.

Law reviews.

For article, “The General Practitioner and Anti-trust Problems,” see 20 Ga. B.J. 47 (1957).

For article surveying important general legal principles of municipal and county government purchasing and contracting in Georgia, see 16 Mercer L. Rev. 371 (1965).

For article discussing effect of contracts against public policy, see 4 Ga. L. Rev. 469 (1970).

For article discussing interpretation in Georgia of insurance policies containing evidentiary conditions, see 12 Ga. L. Rev. 783 (1978).

For article surveying recent legislative and judicial developments in Georgia’s real property laws, see 31 Mercer L. Rev. 187 (1979).

For article on enforceability of restrictive covenants in employment contracts, see 17 Ga. St. B.J. 110 (1981).

For article surveying developments in Georgia contracts law from mid-1980 through mid-1981, see 33 Mercer L. Rev. 67 (1981).

For article surveying developments in Georgia local government law from mid-1980 through mid-1981, see 33 Mercer L. Rev. 187 (1981).

For article surveying developments in Georgia real property law from mid-1980 through mid-1981, see 33 Mercer L. Rev. 219 (1981).

For article, “Liabilities of the Former Officer or Director,” see 18 Ga. St. B.J. 150 (1982).

For annual survey on contracts, see 36 Mercer L. Rev. 151 (1984).

For article, “The Underbrush Grows Deeper: Restrictive Covenants in Employment Agreements in Georgia,” see 21 Ga. St. B.J. 28 (1984).

For article, “The New Documentary Concerns Associated With Intelligent Buildings,” see 22 Ga. St. B.J. 16 (1985).

For article, “Defending the Lawsuit: A First-Round Checklist,” see 22 Ga. St. B.J. 24 (1985).

For annual survey of law of contracts, see 38 Mercer L. Rev. 107 (1986).

For article, “Survey of Current Georgia Law Regarding Restrictive Covenants,” see 25 Ga. St. B.J. 188 (1989).

For article, “Georgia Constitution May Restrict the 1990 Restrictive Covenant Law,” see 27 Ga. St. B.J. 82 (1990).

For article, “Georgia’s New Restrictive Covenant Act,” see 42 Mercer L. Rev. 1 (1990).

For annual survey on law of contracts, see 42 Mercer L. Rev. 125 (1990).

For article, “Georgia’s Indemnity Minefield,” see 28 Ga. St. B.J. 142 (1992).

For annual survey article on contract law, see 45 Mercer L. Rev. 109 (1993).

For article, “Restrictions on Post-Employment Competition by an Executive Under Georgia Law,” see 54 Mercer L. Rev. 1133 (2003).

For survey article on construction law for the period from June 1, 2002 through May 31, 2003, see 55 Mercer L. Rev. 85 (2003).

For survey article on labor and employment law for the period from June 1, 2002 to May 31, 2003, see 55 Mercer L. Rev. 303 (2003).

For annual survey of construction law, see 56 Mercer L. Rev. 109 (2004).

For annual survey of labor and employment law, see 56 Mercer L. Rev. 291 (2004).

For annual survey of labor and employment law, see 57 Mercer L. Rev. 251 (2005).

For annual survey of labor and employment law, see 58 Mercer L. Rev. 211 (2006).

For survey article on construction law, see 59 Mercer L. Rev. 55 (2007).

For survey article on insurance law, see 59 Mercer L. Rev. 195 (2007).

For survey article on labor and employment law, see 59 Mercer L. Rev. 233 (2007).

For survey article on labor and employment law, see 60 Mercer L. Rev. 217 (2008).

For annual survey on construction law, see 61 Mercer L. Rev. 65 (2009).

For article, “Georgia Gets Competitive,” see 15 (No. 4) Ga. St. B.J. 13 (2009).

For annual survey of law on construction law, see 62 Mercer L. Rev. 71 (2010).

For annual survey of law on labor and employment law, see 62 Mercer L. Rev. 181 (2010).

For article on the 2011 amendment of this Code section, see 28 Ga. St. U.L. Rev. 21 (2011).

For annual survey on construction law, see 64 Mercer L. Rev. 71 ( 2012).

For annual survey on labor and employment law, see 66 Mercer L. Rev. 121 (2014).

For annual survey on construction law, see 68 Mercer L. Rev. 83 (2016).

For article, “Construction Law,” see 70 Mercer L. Rev. 51 (2018).

For annual survey on real property law, see 70 Mercer L. Rev. 209 (2018).

For annual survey on construction law, see 71 Mercer L. Rev. 57 (2019).

For article, “Is Liberal Enforcement of Noncompetes Still Good Policy?,” see 26 Ga. St. B.J. 26 (Oct. 2020).

For article with annual survey on construction law, see 73 Mercer L. Rev. 59 (2021).

For note discussing organized crime in Georgia with respect to the application of state gambling laws, and suggesting proposals for combatting organized crime, see 7 Ga. St. B.J. 124 (1970).

For note discussing covenants not to compete in employment contracts as void when in general restraint of trade, see 10 Ga. St. B.J. 125 (1973).

For note discussing exculpatory clauses in leases in light of Country Club Apts. v. Scott, No. 36346 (Ga. Sup. Ct., Oct. 1, 1980), see 32 Mercer L. Rev. 419 (1980).

For note on 1990 amendment of this Code section, see 7 Ga. L. Rev. 244 (1990).

For note, “Laissez Fair: The Case for Alternative Litigation Funding and Assignment of Lawsuit Proceeds in Georgia,” see 49 Ga. L. Rev. 1121 (2015).

For comment on Dixie Bearings, Inc. v. Walker, 219 Ga. 353 , 133 S.E.2d 338 (1963), see 1 Ga. St. B.J. 220 (1964).

For comment on Durham v. Stand-By Labor of Ga., Inc., 230 Ga. 558 , 198 S.E.2d 145 (1973), appearing below, see 8 Ga. L. Rev. 526 (1974).

For comment discussing indemnity and exculpatory agreements contained in real property leases, see 33 Emory L.J. 135 (1984).

For comment, “The Application of Contract Law to Georgia Noncompete Agreements: Have We Been Overlooking Something Obvious?,” see 41 Mercer L. Rev. 723 (1990).