Choice Theory of Contracts- The Role of Law of Contracts in Liberal State

Abstract

The world in which we live today, everything is governed by transactions that constantly happen around us and each transaction holds sanctity only when these have a formal authorized contract to back it up. An agreement when becomes enforceable by law, provided it encompasses all the essentials becomes a valid contract. Contract laws have been structured for decades around a varied assortment of options to many of life's urgent legal concerns - in other words, agreement kinds for community, job, and country estate, as well as business. The main purpose of contracts is to serve as a resolute tool to regulate the agreement by allowing parties to enforce obligations on one another and to efficiently handle the consequential disputes that may arise, while law on the other hand ensures its maximum utility. While talking about the contracts one of the most important aspects that matters is the Freedom associated with it. Be it the freedom to enter into a contract, freedom to agree to specific terms of the contract, or the freedom of choice. It is the liberal state that enhances the autonomy of a contractual relationship.

Through this research, the researcher shall attempt to analyze the impact of the choice theory of contracts and understand its role in contract law to enforce a liberal state. This paper also throws light on the challenges in attaining this liberal state through various prescriptive contractual frameworks. It attempts to show how Choice theory depicts why and how freedom matters to contract. It emphasizes on how freedom of choice justifies and shapes contract laws in a liberal state.

Keywords: Contract, Choice theory, Liberal state, Freedom, obligation, law, commercial laws, agreements

JEL Classification: K1, K10, K12, Y4