Skip to main content

Search from vocabulary

Content language

Concept information

Preferred term

freedom of contract  

Definition

  • There are three basic institutions that provide the framework for all economic transactions in contemporary society, namely, market, governmental regulation, and contract. The economic analysis of their performance and function reveals that contracting is an especially effective legal institution in coordinating private economic transactions if the following requirements are satisfied in the process of contract formation and contract performance: freedom of contract, fairness and social utility, bargaining power parities, symmetric information and transparency of intentions, third-party exemption, possibility of adjustment, and legal forum for settlement and enforceability. [Source: Encyclopedia of Business Ethics and Society; Freedom of Contract]

Belongs to group

URI

https://concepts.sagepub.com/social-science/concept/freedom_of_contract

Download this concept: