In the case of Parker v. Latey, the Supreme Court of the United States was asked to decide whether a contract between two parties was valid. The contract in question was between a husband and wife, and it provided that the husband would pay the wife a certain sum of money each month in exchange for her relinquishing her right to alimony. The wife argued that the contract was invalid because it was against public policy. The Supreme Court held that the contract was valid and enforceable. The Court reasoned that the contract was not against public policy because it was entered into voluntarily by both parties and did not involve any fraud or coercion. Furthermore, the Court noted that the contract was beneficial to both parties, as it provided the wife with a steady income and the husband with the assurance that he would not be liable for alimony payments in the future. The Court also held that the contract was binding on both parties, and that the wife could not later seek alimony payments from her husband. This decision established the principle that contracts between spouses are valid and enforceable, provided that they are entered into voluntarily and without fraud or coercion.

In Parker v. Latey, the Supreme Court was asked to decide whether a widow who had been given an annuity from her deceased husband's estate could be deprived of it if she remarried. The majority opinion held that the widow should not be allowed to keep her annuity after marriage because it would create a conflict between two interests: one in protecting widows and another in preserving family property for children. Justice Field dissented, arguing that such a rule violated both natural justice and public policy by depriving women of their right to contract freely with respect to their own property rights. He argued that the court should not interfere with contracts made before death unless there is clear evidence of fraud or mistake on either side; otherwise, he said, "the law will become oppressive." Furthermore, he noted that allowing widows to retain their annuities even after remarrying would encourage them to provide for themselves rather than rely solely on charity or other forms of assistance from society at large.