The Freedom of Contract (economic theory)

The Freedom of Contract is an economic theory that argues individuals and businesses should have the liberty to negotiate and agree to the terms of their contracts without interference from the government. This principle emphasizes personal autonomy and the idea that parties are best suited to determine their own interests. By allowing free negotiation, it encourages economic efficiency, innovation, and the ability to tailor agreements to specific needs. However, it also recognizes the importance of fairness and protection against exploitation, leading to laws that ensure contracts do not infringe upon basic rights or public welfare.