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Simple English definitions for legal terms
freedom of contract
Read a random definition: imprisonment
A quick definition of freedom of contract:
Freedom of contract means that people can make agreements with each other without the government telling them what to do. This is the opposite of when the government makes rules about how people can make agreements. For example, in a famous court case called Lochner v. New York, a man named Lochner was fined for letting his workers work too many hours. He argued that he should be able to make agreements with his workers without the government telling him what to do.
A more thorough explanation:
Freedom of contract is the right of individuals or parties to make their own agreements and set the terms of their contracts without interference from the government. This means that people can negotiate and agree on the terms of their contracts as they see fit, without any outside influence.
For example, if a person wants to sell their car to another person, they can negotiate the price, the payment terms, and any other conditions they want to include in the contract. The government cannot dictate the terms of the contract or interfere with the negotiations.
However, there are some limitations to freedom of contract. For instance, the government can regulate contracts that are deemed to be against public policy or that violate certain laws. For example, in Lochner v. New York, the Supreme Court upheld a state law that limited the number of hours that bakers could work. The law was designed to protect the health and safety of workers, and the Court ruled that it was a reasonable regulation of the freedom of contract.