The pension agency has maintained that the new contract violates Federal pension insurance laws.
Air Products and Chemicals contended that the contracts violated its corporate policy against risky investments.
A number of critics say the contract violates the separation of church and state.
Such exclusive contracts, the court said, would not violate antitrust law.
The implications for the city of any formal decision that Prison Health's contract violates the law remain unclear.
The court considered if such a contract, one spouse helping another in time of illness in exchange for title to property, violated public law.
The court ruled that the contract in question did violate public policy and was therefore unenforceable.
Sanders's contract, which included an $11.5 million signing bonus, violated what is known as the 30 percent rule.
In fact a written contract often violates a Moslem's sensitivities because it challenges his honour.
Israeli lawyers, however, claim that these contracts violate Israeli law, and would under not be enforceable.