Freedom of Contract: The Cornerstone of Common Law
The principle of freedom of contract is a fundamental tenet of common law systems, granting individuals and businesses significant autonomy in negotiating and entering into contractual agreements. This principle reflects the idea that parties are best positioned to determine their own interests and obligations.
Under the principle of freedom of contract, courts generally enforce contracts as written, even if the bargaining power between the parties is unequal. This approach prioritizes contractual certainty and predictability. However, this freedom is not absolute.
Common law recognizes limitations to contractual autonomy. Contracts induced by fraud, duress, or undue influence are voidable, as these vitiate the parties’ genuine consent. Additionally, contracts that violate public policy or are deemed unconscionable may be unenforceable. To protect vulnerable parties, such as consumers or employees, many jurisdictions have enacted consumer protection and employment laws that impose certain standards and restrictions on contractual terms.
While freedom of contract remains a core principle, its application is tempered by the need to balance individual autonomy with broader societal interests, such as fairness and consumer protection.
Created by iax, Enhanced by AI
Proudly powered by WordPress