Law 2101 Study Guide - Quiz Guide: Friedrich Carl Von Savigny, Meeting Of The Minds, Barter
Document Summary
Contract legally binding agreements, irrespective of whether they are written down or not, e. g. buying new products, take out insurance, go to a hairdresser; they can even come about in case when no word is spoken. Voluntary exchange it is left to the needs of the people and to the market"s price mechanism to ensure that supply and demand correspond to each other, the government does not decide this. A market economy is based on the premise that people and companies should make their own bargains on the basic of a voluntary exchange of goods and services. Such a market economy cannot do without contracts. Contract law rules and principles that govern transactions among parties; ensures that contracts are binding, and can be enforced in the courts. Market actors individuals, companies, government bodies, municipalities, ngos etc. They are enabled to participate in economic and social life because of contract law being the cement of modern society.
