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Contractual Freedom and its Limitations

Author

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  • Lucia Uta

    ("Dimitrie Cantemir" Christian University)

Abstract

Parties’ freedom of will is expressed through the following three principles: 1. contractual freedom; 2. the binding power of the contract; and 3. the relativity of the contract’s effects. The parties are free to contract or not, to choose the other contracting party and to determine the content of the contractual clauses. The principle of mutual consent appears as a corollary of the freedom of will principle. According to this principle, the parties’ simple manifestation of will is sufficient to form a valid contract.

Suggested Citation

  • Lucia Uta, 2010. "Contractual Freedom and its Limitations," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 2(4), pages 74-78, December.
  • Handle: RePEc:khe:journl:v:2:y:2010:i:4:p:74-78
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    More about this item

    Keywords

    Freedom of will; contractual freedom; public order and morals; freedom of form;
    All these keywords.

    JEL classification:

    • K29 - Law and Economics - - Regulation and Business Law - - - Other

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