The State And Freedom Of Contract

The relationship of law to economic freedom has been a vital element in the history of all modern democratic societies. "Freedom of contract" is both a technical term in law, referring to private agreements and promises, and a metaphor often deployed to describe economic liberty. This volume of new essays by eminent legal historians offers fresh perspectives on freedom of contract in both senses of the term, and considers how economic freedom relates to such classic political freedoms as free speech and other Anglo-American constitutional norms. The principal focus of the essays is on broad issues of policy and law, rather than on narrow considerations of legal doctrine. All the contributors reject stereotypes that pervade the existing literature about the allegedly unalloyed individualism of the common law, and show how active state interventions of various kinds have shaped contract law in relation to social change throughout our legal history. Equally, however, they reject shibboleths regarding "bringing the state back in," and take a hard look at the claims of statist ideology regarding the norms and rules that have established the legal boundaries of liberty in the modern industrial and post-industrial eras. The topics covered are Blackstone's claim that property was the "despotic dominion of the private owner" (A. W. B. Simpson), labor and contract (John V. Orth), the influence of philosophical trends on legal innovations (James Gordley), contract and individualism (David Lieberman), the tradition of public rights (Harry N. Scheiber), the formal concept of "liberty of contract" in American law (Charles McCurdy), the interwoven history of labor law and contract law (Arthur McEvoy), public policy in relation to natural resources (Donald Pisani), and globalization of freedom of contract (Martin Shapiro).

Declared dead some twenty-five years ago, the idea of freedom of contract has enjoyed a remarkable intellectual revival. In The Fall and Rise of Freedom of Contract leading scholars in the fields of contract law and law-and-economics analyze the new interest in bargaining freedom. The 1970s was a decade of regulatory triumphalism in North America, marked by a surge in consumer, securities, and environmental regulation. Legal scholars predicted the “death of contract” and its replacement by regulation and reliance-based theories of liability. Instead, we have witnessed the reemergence of free bargaining norms. This revival can be attributed to the rise of law-and-economics, which laid bare the intellectual failure of anticontractarian theories. Scholars in this school note that consumers are not as helpless as they have been made out to be, and that intrusive legal rules meant ostensibly to help them often leave them worse off. Contract law principles have also been very robust in areas far afield from traditional contract law, and the essays in this volume consider how free bargaining rights might reasonably be extended in tort, property, land-use planning, bankruptcy, and divorce and family law. This book will be of particular interest to legal scholars and specialists in contract law. Economics and public policy planners will also be challenged by its novel arguments. Contributors. Gregory S. Alexander, Margaret F. Brinig, F. H. Buckley, Robert Cooter, Steven J. Eagle, Robert C. Ellickson, Richard A. Epstein, William A. Fischel, Michael Klausner, Bruce H. Kobayashi, Geoffrey P. Miller, Timothy J. Muris, Robert H. Nelson, Eric A. Posner, Robert K. Rasmussen, Larry E. Ribstein, Roberta Romano, Paul H. Rubin, Alan Schwartz, Elizabeth S. Scott, Robert E. Scott, Michael J. Trebilcock

Our legal system is committed to the idea that private markets and the law of contracts that supports them are the primary institutions for allocating goods and services in a modern economy. Yet the market paradigm, this book argues, leaves substantial room for challenge. For example, should people be permitted to buy and sell blood, bodily organs, surrogate babies, or sexual favors? Is it fair to allow people with limited knowledge about a transaction and its consequences to enter into it without guidance from experts?

The impact of freedom of contract in the 19th century extended far beyond the legal arena as an economic slogan and an ethical attitude. Atiyah traces the development and subsequent decline of the freedom of contract, depicting its effects on the law's development and the foundation of contractual obligations, as well as its broader implications for 19th century English life.