Contract law helps enforce agreements from "summary" of Economic Analysis of Law by Richard A. Posner
The primary function of contract law is to enable parties to make agreements that are enforceable in a court of law. This enforcement mechanism is essential for facilitating economic transactions and promoting efficiency in the marketplace. Without the ability to enforce agreements, parties would be less likely to engage in mutually beneficial transactions, leading to a breakdown in economic activity. By providing a legal framework for enforcing agreements, contract law minimizes the risk of opportunistic behavior by parties seeking to renege on their obligations. This enforcement mechanism creates incentives for parties to adhere to their contractual commitments, thereby promoting trust and...
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