A more thorough explanation:

Liberty of contract, also known as freedom of contract, is the idea that people have the right to make legally binding agreements without interference from external sources such as the government. This means that contracts are based on mutual agreement and free choice.

For example, if two people agree to buy and sell a car for a certain price, they have the right to do so without the government telling them they can't. This is because the principle of liberty of contract allows individuals to make their own decisions about their relationships and agreements.

The concept of liberty of contract is important because it allows people to enter into agreements that are beneficial to them and to negotiate terms that work for both parties. It also allows for the creation of new business ventures and economic growth.