In Slawson v. Grand Street Railroad Company, the Supreme Court of the United States was asked to determine whether a contract between a railroad company and a passenger was enforceable. The plaintiff, Slawson, had purchased a ticket from the defendant, Grand Street Railroad Company, for a round-trip journey. The ticket contained a clause that stated that the ticket was non-transferable and that the passenger was not allowed to transfer the ticket to another person. Slawson had transferred the ticket to another person, and the railroad company refused to honor the ticket. The Supreme Court held that the contract between the railroad company and Slawson was enforceable. The Court reasoned that the contract was valid and binding, and that the railroad company was not obligated to honor the ticket after it had been transferred to another person. The Court also held that the clause in the ticket was valid and enforceable, and that the railroad company was entitled to refuse to honor the ticket after it had been transferred. The Court concluded that the railroad company was not liable for damages resulting from the transfer of the ticket.

In Slawson v. Grand Street Railroad Company, the Supreme Court was tasked with determining whether a contract between two parties could be enforced despite being in violation of state law. The majority opinion held that the contract should not be enforced as it violated public policy and constituted an illegal agreement under state law. Justice Field dissented from this decision, arguing that while contracts which are against public policy or violate criminal statutes cannot be enforced, there is no reason why a valid civil contract should not stand even if it violates some minor provisions of local laws or regulations. He argued that such contracts can still serve to protect private rights and interests without infringing on any public policies or violating any criminal statutes; thus they ought to remain enforceable by courts of justice unless prohibited by express legislation from Congress.