The classical theory of contract presumes that the agreement consists of an exchange of promises - generally a promise to provide a benefit and a promise to pay for it - which generate obligations in law to provide the benefit and to pay for it..
List of doctrines in contract law
The five best known theories or principles of contractual obligation-the will theory, the reliance the- ory, the fairness theory, the efficiency theory and the bargain theory- each have very basic shortcomings..
What is the theoretical basis of the law of contract?
Theories of contract law fall into three basic categories: formalist, interpretive, and normative. Central to each category is the method of legal reasoning that is utilized by theories in the category and the relative roles the theories assign to doctrinal and social propositions..
Why is theory important in contract law?
The importance of contract theory is that it enables understanding legally binding agreements between parties under the influence of adverse selection..
Nov 23, 2021The first, and most famous, holds that contract law enforces the basic moral duty to keep promises. A related though distinct view presents General Theories of the Law of Philosophical Themes in the Bibliography
What are the general principles of a contract law?
The basic principles of contract law include: Once a person signs a contract, the basic rule of law is that they are bound by their signature, whether they have read the contract or not, or understood the document - or not
It's known as the doctrine of freedom of contract
The starting point doesn’t get more fundamental than this
What are the theories of contract law?
Theories of contract law fall into three basic categories: formalist, interpretive, and normative
Formalist theories proceed by first purporting to identify a core set of rules that are justified on the ground that they are self-evident axioms, and then purporting to derive the remaining rules by logical deduction from the axioms
Interpretive theories proceed by describing areas of contract
Contract theory is the study of how individuals and businesses construct and develop legal agreements. It analyzes how parties with conflicting interests build formal and informal contracts and investigates the formation of contracts in the presence of asymmetric information.
Theories of contract law fall into three basic categories: formalist, interpretive, and normative. Formalist theories proceed by first purporting to identify a core set of rules that are justified on the ground that they are self-evident axioms, and then purporting to derive the remaining rules by logical deduction from the axioms.
A complete contract is an important concept from contract theory.
Legal theory that ongoing contracts are founded on the relationship between the parties
A relational contract is a contract whose effect is based upon a relationship of trust between the parties. The explicit terms of the contract are an outline implicit terms and understandings that determine the behaviour of the parties.
Contract law and theory
Legal interpretation
The title-transfer theory of contract (TTToC) is a legal interpretation of contracts developed by economist Murray Rothbard and jurist Williamson Evers. The theory interprets all contractual obligations in terms of property rights, viewing a contract as a bundle of title transfers. According to Randy Barnett, the TTToC stands in opposition to most mainstream contract theories which view contractual obligations as the result of a binding promise. Proponents of the approach often claim it is superior on grounds of both consistency and ethical considerations. The TTToC is often supported by libertarians.
