Freedom of Contract

Research output: Chapter in Book/Report/Conference proceedingChapter


Freedom of contract is a principle of law, expressing three related ideas: Parties should be free to choose their contracting partners (“party freedom”), to agree freely on the terms of their agreement (“term freedom”), and where agreements have been freely made, parties should be held to their bargains (“sanctity of contract”). A key contribution of economics to contract law scholarship has been to systematize and rationalize both the principle and its limits in terms of social welfare. This entry provides an overview of the economic justifications and limitations of the principle.
Original languageEnglish
Title of host publicationEncyclopedia of Law and Economics
EditorsAlain Marciano, G B Ramello
Place of PublicationNew York
Number of pages9
ISBN (Electronic)978-1-4614-7883-6
ISBN (Print)978-1-4614-7883-6
Publication statusE-pub ahead of print - 8 May 2021


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