The "public policy exception" is a legal principle that allows courts to refuse to enforce certain contracts or agreements if they conflict with the fundamental principles of society. This exception is often applied in cases involving illegal activities or agreements that could harm public welfare, such as contracts related to illegal drugs or human trafficking. In essence, the public policy exception serves to protect the interests of society as a whole. By invalidating agreements that go against public morals or safety, courts aim to uphold the values and standards that are essential for a functioning community, ensuring that individual agreements do not undermine the greater good.