Freedom of Contract
Definition - What does Freedom of Contract mean?
Freedom of contract is the idea that people are not forced or coerced into legally binding transactions. Instead, they make these agreements willingly based on shared understandings, and this in turn negates the need for outside intervention. Specifically, it eliminates any need for the government or similar entity to dictate the terms of the contract.
Justipedia explains Freedom of Contract
In the United States, freedom of contract applies to any contract reached between adults.
However in other countries, where common and civil law are practiced, there are some legal limitations to freedom of contract. In England, for example, the law restricts the amount of financial compensation that can be awarded in breach of contract and similar cases.
In some cases, foreign laws can also affect the length of the agreement or the extent of the party's liability.