This chapter uses the main principle to explain why economic rights should be regarded as human rights. Property rights, contract rights, and other economic rights are a solution to the productive investment CAP. Property and contract rights are not defined a priori, but should be defined in a way that they will, as a practice, do the best job of equitably promoting life prospects. The chapter uses the main principle to explain the moral appropriateness of the contours of property rights (...) to both tangible and intangible property; exceptions to contracts, including unconscionability, implied warranties, strict liability, mandatory disclosure, bankruptcy; the replacement of caveat emptor with caveat venditor in win-win contracts; market economies; negative income tax; voluntary consent to economic and other transactions; prohibitions on slavery contracts; minimum wage legislation. The chapter contrasts his account with fair starting-point theories of justice, including Ronald Dworkin’s theory. He also contrasts his account with Richard Posner’s account of the common law in terms of economic efficiency. (shrink)

In his paper, ìRight Weakening and Right Contraction in LK î, Hirokawa investigates the properties of the structural rules of contraction and weak- ening as they appear in a certain sequent calculus formulation of Örst order classical logic. In what follows we explore the notion of correspondence, in particular with reference to the structural rules in the succedent, and in doing so critically examine the sensitivity of Hirokawaís results to the formulation of the calculus, both with respect (...) to the formulations of the rules governing the connectives present and to the choice of the connectives themselves. (shrink)

Social contract thought has always contained multiple and mutually conflicting lines of argument; the minimalist contractarianism so influential today represents the weaker of two main constellations of claims. I make the case for a Kantian contract theory that emphasizes the bedrock principle of consent of the governed instead of the mere heuristic device of the exit from the state of nature. Such a shift in emphasis resolves two classic difficulties: tradi- tional contract theory’s ahistorical presumption of a pre-political settlement, and (...) its impossibly high demands on citizens seeking to practice self-rule. Kant’s solutions to these problems of property rights and citizenship are found in his political works, rather than the ethical works through which Kant’s political theory is usually interpreted. (shrink)

I. Introduction Two kinds of remedies have traditionally been employed for breach of contract: legal relief and equitable relief. Legal relief normally takes the form of money damages. Equitable relief normally consists either of specific performance or an injunction – that is, the party in breach may be ordered to perform an act or to refrain from performing an act. In this article I will use a “consent theory of contract” to assess the choice between money damages and specific performance. (...) According to such a theory, contractual obligation is dependent on more fundamental entitlements of the parties and arises as a result of the parties' consent to transfer alienable rights. My thesis will be that the normal rule favoring money damages should be replaced with one that presumptively favors specific performance unless the parties have consented to money damages instead. The principal obstacle to such an approach is the reluctance of courts to specifically enforce contracts for personal services. The philosophical distinction between alienable and inalienable rights bolsters this historical reticence, since a right to personal services may be seen as inalienable. I will then explain why, if the subject matter of a contract for personal services is properly confined to an alienable right to money damages for failure to perform, specific enforcement of such contracts is no longer problematic. Finally, I shall consider whether the subject matter of contracts for corporate services is properly confined to money damages like contracts for personal services, or whether performance of corporate services can be made the subject of a valid rights transfer and judicially compelled in the same manner as contracts for external resources. (shrink)

This paper argues that widely accepted understanding of the respective responsibilities of business and government in the post war industrialized world can be traced back to a tacit social contract that emerged following the second world war. The effect of this contract was to assign responsibility for generating wealth to business and responsibility for ensuring the equitable sharing of wealth to governments. Without question, this arrangement has resulted in substantial improvements in the quality of life in the industrialized world in (...) the intervening period. I argue that with advance of economic globalization and the growing power and influence of multi national corporations, this division of responsibilities is not longer viable or defensible. What is needed, fifty years after the United Nations Declaration of Human Rights, is a new social contract that shares responsibilities for human rights and related ethical responsibilities in a manner more in keeping with the vision captured by the post war Declaration. I conclude by suggesting some reasons for thinking that a new social contract may be emerging. (shrink)

This paper defends a right to the justification of contract, with reciprocal and general reasons, and explores its main implications for the law of contract and its theory. It argues that the leading essentialist and other monist contract theories, offering blueprints for an ideal contract law based on the alleged ultimate value or essential characteristic of contract law, cannot justify the basic structure of contract law. Instead, it argues, a critical discourse theory of contract can contribute to the realisation (...) of the right to justification of contract by exposing patterns of contractual injustice, in particular exploitation and domination by contract, that contract law can and should prevent. (shrink)

Pateman challenges the way contemporary society functions by questioning the standard interpretation of an idea that is deeply embedded in American and British political thought: that our rights and freedoms derive from the social contract explicated by Locke, Hobbes, and Rousseau and interpreted in the United States by the Founding Fathers. The author shows how we are told only half the story of the original contract that establishes modern patriarchy. The sexual contract is ignored and thus men's patriarchal right (...) over women is also glossed over. No attention is paid to the problems that arise when women are excluded from the original contract but incorporated into the new contractual order. One of the main targets of the book is those who try to turn contractarian theory to progressive use, and a major thesis of the book is that this is not possible. Thus those feminists who have looked to a more "proper" contract- one between genuinely equal partners, or one entered into without any coercion- are misleading themselves. In the author's words, "In contract theory universal freedom is always a hypothesis, a story, a political fiction. Contract always generates political right in the forms of domination and subordination." Thus the book is also aimed at mainstream political theorists, and socialist and other critics of contract theory. The author offers a sweeping challenge to conventional understandings- of both left and right- of actual contracts in everyday life: the marriage contract, the employment contract, the prostitution contract, and the new surrogate mother contract. By bringing a feminist perspective to bear on the contradictions and paradoxes surrounding women and contract, and the relation between the sexes, she is able to shed new light on fundamental political problems of freedom and subordination. (shrink)

ExcerptThe following essay is an investigation into the nature of the contract, the way in which the contract indexes “right” and equality, and the textual and historical expressions—as well as echoes—that this has taken from Thomas Hobbes to Karl Marx.1 The opening set of conceptual remarks will lead to a reading of Hobbes's Leviathan and Marx's On the Jewish Question, with the intent of arguing that both texts were concerned with theoretically explicating the relationship between right and equality, (...) germane to which was the problematic of the “nation,” which was itself conceived via the “Jewish question.” It will be argued…. (shrink)

There is an ongoing debate in the philosophical and jurisprudential literature regarding the nature and possibility of Contract theory. On one hand are those who argue (or assume) that there is, or should be, a single, general, universal theory of Contract Law, one applicable to all jurisdictions and all times. On the other hand are those who assert that Contract theory should be localized to particular times and places, perhaps even with different theories for different types of agreements. This article (...) considers one facet of this debate: evaluating the relevance of the fact that the remedies available for breach of contract can vary significantly from one jurisdiction to another. This wide variation in remedies for breach of a (contractual) promise is one central difference between promises in morality and enforceable agreements in law. The article asserts that variation of remedies strongly supports the conclusion that there is (and can be) no general, universal theory of Contract Law. (shrink)

This chapter argues that the same logic that imbues the state with the legitimate authority to punish also imposes restraints on that authority. It suggests that scholarship on punishment puts more emphasis on the political legitimacy of state punishment rather than on the moral question of what is deserved by criminals. It turns to Rousseau's social contract based justification for punishment as a crucial resource in that effort. It begins by closely examining Rousseau's claim that the criminal consents to punishment, (...) and by suggesting that his seemingly absurd and perverse claims are actually defensible. It goes on to clarify two senses in which Rousseau's understanding of consent serves to ground the rights of the guilty. First, it argues that the idea of consent itself legitimizes some punishment but also sets strict limits on when and how the state can punish. Second, it argues that Rousseau's account of welfare rights also sets a limit on when the state may rightfully punish. The final two sections of the chapter consider the role of punishment outside the social contract in Rousseau's theory and suggest an important contrast between Rousseau's and Hobbes's conceptions of punishment. (shrink)

We establish the “contraction-elimination theorem” which means that if a sequent Γ A is provable in the implicational fragment of the Gentzen's sequent calculus LK and if it satisfies a certain condition on the number of the occurrences of propositional variables, then it is provable without the right contraction rule. By this theorem, we get the following.1. If an implicational formula A is a theorem of classical logic and is not a theorem of intuitionistic logic, then there (...) is a propositional variable which occurs at least once positively and at least twice negatively in A → a) → a).2. If an implicational formula A is a theorem of intuitionistic logic and is not a theorem of BCK-logic, then there is a propositional variable which occurs at least twice positively and at least once negatively in A → a → b).We prove the contraction-elimination theorem by a fully syntactical method, which has some analogy with Gentzen's cut-elimination. (shrink)

Abstract. There is an ongoing debate in the philosophical and jurisprudential literature regarding the nature and possibility of Contract theory. On one hand, are those who argue (or assume) that there is, or should be, a single, general, universal theory of Contract Law, one applicable to all jurisdictions and all times. On the other hand, are those who assert that Contract theory should be localized to particular times and places, perhaps even with different theories for different types of agreements. This (...) article considers one facet of this debate: evaluating the relevance of the fact that the remedies available for breach of contract can vary significantly from one jurisdiction to another. This wide variation in remedies for breach of a (contractual) promise is one central difference between promises in morality and enforceable agreements in law. The article asserts that variation of remedies strongly supports the conclusion that there is (and can be) no general, universal theory of Contract Law. (shrink)

In the present paper we argue that the theory of contracts embraced by many libertarian scholars and relied upon by them in sundry important debates (e.g. over morality of the fractional reserve banking or loan maturity mismatching etc.), that is, the title transfer theory of contracts (TTT) should be rejected as not being able to account for the binding force of future-oriented contracts, including contracts deemed enforceable by those scholars themselves. The TTT claims that the only contracts that should be (...) legally binding are these where the debtor’s failure to abide by them constitutes a violation of the creditor’s private property rights. However, as we argue, no default of the debtor in a future-oriented contract can in itself amount to such a violation. (shrink)

The possibility of collective action is essential to human freedom. Yet, as Rousseau famously argued, individuals acting together allow themselves to depend on one another’s choices and thereby jeopardize one another’s freedom. These two facts jointly constitute what I call the normative problem of collective action. I argue that solving this problem is harder than it looks. It cannot be done merely in terms of moral obligations; indeed, it ultimately requires putting in place a full-fledged system of contract rights. The (...) point has important ramifications for contract theory. The role that contract rights play in reconciling collective action and freedom turns out to be crucial to understanding how—and by whom—these rights can legitimately be enforced. It also explains why expectation damages should be the standard remedy for breach of contract. (shrink)

Samuel Freeman was a student of the influential philosopher John Rawls, he has edited numerous books dedicated to Rawls' work and is arguably Rawls' foremost interpreter. This volume collects new and previously published articles by Freeman on Rawls. Among other things, Freeman places Rawls within historical context in the social contract tradition, and thoughtfully addresses criticisms of this position. Not only is Freeman a leading authority on Rawls, but he is an excellent thinker in his own right, and these (...) articles will be useful to a wide range of scholars interested in Rawls and the expanse of his influence. (shrink)

For all contract theorists, including Kant, political legitimacy is based upon the consent of the governed. The differences amongst them begin to emerge when we inquire into the motivations and considerations which lead up to the agreement. For Kant, consent to the social contract is not based upon considerations of rational self-interest or prudence, nor upon a natural right to self-preservation and the guarantee of absolute property rights, but upon a moral obligation to institutionalize and make peremptory in a (...) social contract property rights that in the state of nature have only a provisional character. Whether this approach ultimately makes the idea of a voluntary agreement superfluous is a question I will address below. First I would like to consider the unique status Kant assigns to property rights in his theory of the social contract. This status has for the most part not been observed in the secondary literature, and Kant has even been accused of falling behind the achievements of Locke and Rousseau by grounding property rights on an element of brute force. However, since Kant himself espoused a labor theory of property rights in his earlier writings, it is important to consider carefully the basis for its subsequent rejection in the Rechtslehre. Further, since Kant’s theory of property rights constitutes an alternative to Locke, it may be possible to find within the contract tradition an alternative to the view of property rights found in some of its contemporary versions. (shrink)

Abstract:Social contracting has a long and important place in the history of political philosophy (Hardin, 1991; Waldron, 1989) and as a theory of justice (Baynes, 1989; Rawls, 1971). More recently, it has been developed into an individual rights-based theory of organizations (Keeley, 1980, 1988), and as a way to integrate ethics and moral legitimacy into corporate strategy and action (Donaldson, 1982; Freeman&Gilbert, 1988). Currently, it is being proposed as an integrative theory of economic ethics (Donaldson&Dunfee, forthcoming). This paper will extend (...) the Donaldson and Dunfee approach by arguing thatsocial contracting can best be understood and applied in organizational settings if it is perceived and treated as a network governance process. This insight can benefit management scholars and practitioners alike, since it calls attention to the processes by which trust is created and sustained in on-going contractual relationships. It also strongly suggests that a new approach to applying managerial discretion, asmoral agency, is needed to realize the full competitive and ethical potential of emerging network forms. (shrink)

The legal status of the human body is hotly contested, yet the law of the body remains in a state of confusion and chaos. Sometimes the body is treated as an object of property, sometimes it is dealt with under the rubric of contract, and sometimes it is not conceived as property at all, but rather as the subject of privacy rights. Which body of law should become the law of the body? This question is even more pressing in the (...) context of current biomedical research, which permits commodification and commercialization of the body by everyone except the person who provides the “raw materials.” The lack of property protection for tangible parts of the human body is in stark contrast to the extensive protection granted to intellectual property in the body in the form of patents upon human genes and cell lines. Moreover, even courts that reject ownership claims on the part of those who supply body parts appear willing to grant property rights to scientists, universities, and others who use those body parts to conduct research and create products. (shrink)

Although people establish norms that enable them to live together, some of these have to be coupled with a system of enforcement. This conforms to broad social contract theory and can also be applied to the international sphere. The international community is also based on a system of norms. However, unlike the domestic context, there is no overreaching authority to direct states on what they should do. Rather it is left to states themselves to police this framework. However, this has (...) resulted in one of the conditions envisaged by social contract theorists, namely a stasis between the command order and the state of nature. This may explain, for instance, the indifference to some modern human rights violations. Hence the current system of International law, with its insistence on the Westphalian principle of equality of states has caused a substantial fracture in the enforcement of international law, particularly when it comes to serious human rights breaches, and caused something akin to the state of nature envisaged by social contract theorists. While it may be practically impossible to provide a command system in the international sphere similar to the one in the domestic life, there is some hope that a revised deontological ethic founded on global integration may provide one impetus for change. (shrink)

It is a common charge that treaties, perhaps especially recent treaties relating to economic activity, provide unreasonable restrictions on the sovereignty of the state parties. While this charge has been made most forcefully by smaller states, it is sometimes raised with justification by larger states or state-like bodies such as the E.U. as well. When a tribunal judging a dispute on an economic treaty tells a state that it may no longer make decisions such as to accept or reject genetically (...) modified foods, allow internet gambling, or produce generic drugs for domestic consumption, the citizens of the state may rightfully think they have lost important aspects of sovereignty to bodies that do not have legitimate authority to govern. This, in turn, makes negotiating treaties, despite their obvious value, much harder than it otherwise would be, leading to decreased cooperation and the forgoing of potentially significant gain. In this paper, I argue that by importing certain ideas from contract theory to the interpretation of treaties, these worries may be significantly reduced. Contracts have the seemingly paradoxical ability to increase the autonomy of the signers by allowing them to bind themselves to perform certain future actions. But, the ability of contracts to perform this function would be greatly reduced if the only possible remedy for breach were specific performance. Yet, an analogous approach to treaties is common among many important theorists of international law, who demand the equivalence of specific performance in the case of treaties. I will show how importing ideas from contract law can help ensure that treaties, especially economic treaties, are sovereignty-enhancing for states in a way that is similar to the way that contracts may be autonomy-enhancing for individuals, and will show that importing these elements from contract law will strengthen, not undermine, the legitimacy and fairness of international law. (Please download the full paper from SSRN at the link on this page). (shrink)

This chapter contains sections titled: A Lockean Argument for the Right to Liberty Our Rational Moral Competence From Liberty to Lockean Contractarianism.

This article begins with a detailed analysis of how the choice situation of a social contract for international business ethics can be constructed and justified. A choice situation is developed by analyzing conceptions of the multinational firm and the domain of international business. The result is a hypothetical negotiation between two fictional characters, J. Duncan Grey and Elizabeth Redd, who respectively represent the interests of businesses and communities seeking to engage in international trade. The negotiators agree on ethical principles governing (...) wages, the environment, and compliance social and cultural norms. These principles are then shown to rest in wide reflective equilibrium with considered moral judgments on international business ethics, which are drawn from international agreements, such as the UN Declaration on Human Rights, and voluntary business initiatives, such as the Global Sullivan Principles and the UN Global Compact. (shrink)

Contract and employment law have grown apart. Long ago, each side gave up on the other. In this Article, we reunite them to the betterment of both. In brief, we demonstrate the emancipatory potential of contract for the law of work. Today, the dominant contract theories assume a widget transaction between substantively equal parties. If this were an accurate description of what contract is, then contract law would be right to expel workers. Worker protections would indeed be better regulated (...) by—and relegated to—employment and labor law. But contract law is not what contract theorists claim. Neither is contract law what the dominant employment theorists fear—a domain that necessarily misses the constitutive place of work in people’s life-plans and overlooks the systemic vulnerability of workers to their employers. Contract, we contend, is not work law’s canonical “other.” Rightly understood, contract is an autonomy-enhancing device, one founded on the fundamental liberal commitment of reciprocal respect for self-determination. From this “choice theory” perspective, the presumed opposition between employment and contract law dissolves. We show that many employment law doctrines are not external to contract, but are instead entailed in liberal contract itself. Grounding worker protections in contract theory has two salutary effects. First, it offers workers more secure protection than that afforded by their reliance on momentary public-law compromises. Second, it reveals contract’s emancipatory potential for all of us—not just as workers, but also as widget buyers. Contract can empower, and employment can show the way. (shrink)

THE first and most important deduction from the principles we have so far laid down is that the general will alone can direct the State according to the object ...

Recent theorists have suggested that human altruism toward non-family members evolved because of the tremendous benefits of reciprocity. Developing further the notion that evolutionary theory can help to explain moral sentiments, Howard Kahane proposes that a sense of fair play is essential to ethics and argues that moral obligation, too narrowly construed, prevents us from living rationally. He brings his account of fair play to bear on the ethics of various domains of social life including friendship, taxes, civil rights, and (...) nation states. (shrink)

This article argues that the moral right to be discharged only for good cause and like rights can be contracted away by employees in appropriate circumstances. It maintains that the rights in question are not inalienable, and that there is nothing irrational about an employee''s wishing to deal them away. It also maintains that inequalities in bargaining power between employers and employees are insufficiently pervasive to justify a flat ban on the alienation of these rights. For a waiver of (...) such rights to be valid, however, employees must have full knowledge of its terms.The question addressed here bears on several legal and policy issues affecting termination of the employment relation. If employees can contract away their right to a goodcause discharge, the American doctrine of employment at willmight find justification in the face of that right. In addition, the alienability of such discharge rights may be necessary to justify express disclaimers of wrongful discharge liability and the waiver provision of the new U.S. Draft Uniform Employment-Termination Act. (shrink)

Soldiers sign contracts to obey lawful orders; they also swear oaths to this end. The enlistment contract for the Armed Forces of the United States combines both elements: -/- '9a. My enlistment is more than an employment agreement. As a member of the Armed Forces of the United States, I will be: (1) Required to obey all lawful orders and perform all assigned duties … (4) Required upon order to serve in combat or other hazardous situations.' -/- We standardly think (...) that these oaths and contracts give soldiers new moral reasons to fight. Many also think that soldiers who are ordered to fight by legitimate states have moral reasons to obey those orders, just in virtue of their provenance. -/- We generate these reasons through our voluntary decisions—to sign the contract or swear the oath; to form the institutions and give the orders. They are therefore additional moral reasons, on top of the reasons that we have prior to those voluntary decisions. Simply because they are additional, these reasons seem limited in force and scope. In particular, they arguably cannot override pre-existing commitments. For example, if I already have a duty not to kill an innocent person, my promising to breach that duty seems irrelevant to whether doing so is permissible. Similarly for orders issued by legitimate states: the citizens of a legitimate state have pre-existing moral reasons not to kill the innocent; by what alchemy could their state's orders allow combatants to override those reasons? If additional reasons could make prohibited acts permissible, as Sidgwick observed, ‘we could evade any moral obligation by promising not to fulfil it, which is clearly absurd’ (Sidgwick 1981). -/- We might conclude that the contracts soldiers sign, the oaths they take and the orders they receive have weight only when they pertain to acts that soldiers are already allowed to do. Perhaps these additional reasons can require actions that would otherwise be merely permissible, but they cannot license otherwise prohibited actions. If this is right, then it radically limits the relevance of contracts, oaths and authority to the ethics of war, since almost all conflicts involve soldiers breaching some pre-existing moral duties. -/- This is obviously true for soldiers fighting on the unjust side in a war, since almost all the killing they do is unjust. But in all actual wars soldiers on the just side also kill at least some innocent victims, whether as part of an unjust subordinate aim, as ‘collateral damage’, or simply because their adversaries are not sufficiently responsible for unjustified threats to be liable to be killed. If additional reasons cannot make otherwise prohibited acts permissible, then they are practically irrelevant to the ethics of killing in war, at least in this sense: if fighting is impermissible without regard to the contract, oath and authority of their state, then fighting is simply impermissible. -/- This is a tempting conclusion. In this paper, however, I argue that even if it is true at the level of objective permissibility, it is false for subjective permissibility. And since subjective permissibility is where (at least some of) the action is in the ethics of war, this is a significant result. I explain first why additional reasons can make otherwise subjectively prohibited acts permissible, then why just war theorists should care more than they seem to about subjective permissibility. Although I focus throughout on the ethics of war, my arguments generalise to all kinds of additional reasons. (shrink)

Rights claims are ubiquitous in modernity. Often expressed when relatively weaker agents assert claims against more powerful actors, especially against states and corporations, the prominence of rights claims in organizational contexts creates a challenge for virtue-based approaches to business ethics, especially perspectives employing MacIntyre’s practices–institutions schema since MacIntyre has long been a vocal critic of the notion of human rights. In this article, I argue that employee rights can be understood at a basic level as rights conferred by the rules (...) constitutive of practices. As such, employee rights correspond to the obligations of practitioners to treat fellow practitioners according to the standards of excellence and requirements of justice. Thus, one way that managers can ensure that their core practice is well-functioning is to recognize employee rights. One implication of this argument is that managers should adopt a more positive stance toward labor unions, insofar as they are a key way for employees to ensure that their voice is heard, and their rights respected. (shrink)

Can animals, and especially cattle, be the subject ofmoral concern? Should we care about their well-being?Two competing ethical theories have addressed suchissues so far. A utilitarian theory which, inBentham's wake, extends moral consideration to everysentient being, and a theory of the rights orinterests of animals which follows Feinberg'sconceptions. This includes various positions rangingfrom the most radical (about animal liberation) tomore moderate ones (concerned with the well-being ofanimals). Notwithstanding their diversity, theseconceptions share some common flaws. First, as anextension of primarily anthropocentric (...) theories (aboututility or rights) they still participate in the flawsof the original setting. Second, extending them tonon-human beings raises the problem of the borderwhich is to be drawn between what can be included inthe purview of moral consideration and what is leftoutside. Third, such theories are not able to distinguishbetween an ethics of wildlife and an ethics ofdomestic life, which too often leads to preposterousstatements. We would like to argue (i) that we should distinguishbetween environmental ethics (concerned withpopulations, species, biotic communities) and animalethics (where animals are taken into consideration individually);(ii) that individualist animal ethics are not relevantfor animal rearing; (iii) that animal rearing is a hierarchicalrelationship which rules are to be found in the fiction of a domesticcontract.Hence, we would like to construct a new conception ofthe ethics of the relation between men and the cattlethey breed based on the idea of a domestic contract.Our main assumption is Mary Midgleys's anthropologicalassumption, according to which human communities,since the Neolithic age, have always included variousanimals, so that relations of sociability have alwaysexisted between human beings and animals within thedomestic community (a mixed community). In order tospecify the hierarchical and non-egalitarian, butinclusive reciprocal obligations and relations insidesuch a community, we will elaborate on the notion ofa ``domestic contract'', an implicitly assumedidea traced back to Lucretius and whichwe will follow up to the physiocrats and Adam Smith.We will show that such an idea relies upon theassumption of communication between cattle farmer andanimals, of shared experience and exchanges betweenthe two parties. We will then show how modern factory,or battery animal farming, can be seen as unilaterallybreaking this domestic contract, forsaking ourduties towards domestic animals. (shrink)

The law of contracts, at least in its orthodox expression, concerns voluntary, or chosen, legal obligations. When Brody accepts Susan’s offer to sell him a canoe for a set price, the parties’ choices alter their legal rights and duties. Their success at changing the legal landscape depends on a background system of rules that specify when and how contractual acts have legal effects, rules that give the offer and acceptance of a bargain-exchange a central role in generating obligations. Contract law (...) conceived as a body of rules empowering individuals to shape their own rights and responsibilities presents an object of philosophical study. The philosophy of contract includes two broad sets of projects. One set, the focus of the first part of this entry, targets the basic structure and normative justification of the law of contracts. The aim is to subsume a salient body of contract law rules under general principles in order to clarify contract law’s conceptual categories, distinguish it from other areas of law, and specify criteria relevant to its normative appraisal. This kind of philosophical work presupposes detailed knowledge of the law in existing legal regimes, and the entry begins by outlining the common law of contracts. A second set of projects draws on resources from the philosophy of language, philosophy of action, and moral and political philosophy to address debates within contract law. Questions about the nature of meaning and interpretation, intentionality, freedom in contract, and distributive justice drive contemporary legal debates concerning contract formation, interpretation, and enforcement. Philosophical work on these topics has attracted significant commentary which serves as the focus of the second part of this entry. (shrink)

This paper aims to rethink the reason why nineteenth century common lawyers required a promise to be ‘accepted’. James Gordley expresses his opinion on this matter that they did it just in order to answer the annoying question of why and when a promise was binding. He might be right if he were dealing with the nineteenth century civil lawyers. But he cannot explain why common law of contract still employs the doctrine of consideration and refuses to replace the (...) concept of promise with the notion of offer, despite the doctrine of offer and acceptance. This paper reminds readers that the word promise is rather moral than legal. Thenineteenth century common lawyers wanted not to lose the moral force of this word, so they could not exchange a promise for an offer. What they actually did is not to require a promise to be ‘accepted’ but to require ‘a promise’ to be accepted. (shrink)

This article examines the application of social contract theorizing to questions pertaining to the rights of indigenous peoples today, with particular reference to recent work by Jeremy Waldron. It is argued that such theorizing must be examined with reference not only to the content of its claims, but also with respect to its general mode of argumentation and its political function in specific contexts. Read in this light, social contract theory may function to unduly deny the claims of indigenous peoples, (...) oftentimes by shifting the register of debate to a relatively abstract and counter-factual level and relieving settler-colonial societies of the burden of proof. Insofar as social contract theory operates to this effect, it is analysed in terms of a ‘Settler Contract’. (shrink)

If market transactions are optimal, why do so many transactions occur within firms themselves? Ronald H. Coase explains this phenomenon by arguing that market transaction costs differ from intra-company transaction costs and that clear intra-intra-firm property rights have the effect of reducing transaction costs. But what exactly are the relevant transaction costs, and what factors determine them? Oliver Hart argues that market contracts are incomplete, and that the key to improving efficiency is putting the power to deal with these unspecified (...) circumstances into the hands of owners within the same entity.In this paper, I argued that, the development of the theory and practice of business ethics as well as China’s innovative practice in recent decades provide a new perspective, one that is especially relevant to the issues raised by Case and Hart and that bear directly on the reform of China’s state-owned enterprises. (shrink)

States of emergency are declared frequently in all parts of the world. Their declaration routinely implies a suspension of basic constitutional rights. In the last half century, it has become the norm for constitutions to contain an explicit ‘emergency constitution’, i.e., the constitutionally safeguarded rules of operation for a state of emergency. In this paper, I ask whether inclusion of an emergency constitution can be legitimized by drawing on social contract theory. I argue that there are important arguments, both against (...) and in favor of constitutionalized emergency provisions, and that social contract theory—as applied by economists—can be of some help when deciding whether to have, or not to have an emergency constitution. This paper introduces a novel argument for justifying emergency constitutions. It argues that they can serve as a commitment mechanism protecting both citizens and politicians from overreacting to rare but significant threats. (shrink)

In this paper, I explain why people seeking to flourish together fairly in the im- perfect world we share today ought to support a universal carbon tax with no exception for international aviation. The argument proceeds in four steps. First, I provide a free-standing analysis of emissions behavior at the individual moral level. Second, I offer a picture of ideal and non-ideal coordination based mostly on Kantian social contract theory. Third, I argue that in a non-ideal context, moral signals about (...) right relation offer a coordinating fulcrum around which meaningful if only partly coordinated action is possible. Fourth, I apply these conclusions to the case of aviation exceptionalism, focusing especially on instances of incomplete, overlapping, partly coordinated climate actions. I conclude that these arguments together amount to a case for reversing the Chicago Convention and applying a universal carbon tax that does not exclude international flights, ending aviation exceptionalism. (shrink)

This paper examines the social contract theories of Grotius, Hobbes, Pufendorf, and Locke, highlighting the failure of their contractarian defenses of the military and military service. In order to ground the duties of military service, each theorist presumes a chivalric gender order wherein men as men are expected to be willing to sacrifice themselves as violent instruments for the sake of their families and communities. While Grotius, Hobbes, and Pufendorf use the contract method to defend absolute, or near absolute, political (...) authority wherein subject's primary political obligation is to serve the sovereign in war upon command, Locke uses the contract method to create a liberal political order that preserves the natural rights of subjects. Nevertheless, Locke maintains the commitment to self-sacrificial military service. In Locke, then, the military is peeled away from liberal civil society and we see the first statement of the civil-military distinction that persists today. (shrink)

In order to form a contract at least one of the parties to the bargain must give an undertaking or commitment of the appropriate kind to the other; that is, she must perform a commissive speech act of the right kind. It is widely assumed that the speech act in question is a promise. Indeed it is standard textbook fare that a contract is a promise (or an exchange of promises) that the law will enforce. This assumption underlies the (...) venerable tradition in contract theory of arguing that the morality of promise-keeping bears or ought to bear importantly on the content of the law of contract. In this paper I argue that this assumption is false. By way of a critical examination of Seana Shiffrin's impressive recent contribution to this theoretical tradition, I argue that the commissive speech act by means of which a contract is formed is not the same speech act as that by means of which we voluntarily undertake moral obligations to others. (shrink)

This study aimed to estimate the indirect expenses borne by tenant farmers due to credits they receive in community salt farming operations managed through contract farming systems in Pamekasan Regency. Credits constitute a crucial aspect of tenant farmers’ rights within the community salt farming contract farming framework. This study employed a comparative analysis of the cost of funds based on the adopted contract farming models, specifically the two-way and three-way contract farming structures. Moreover, it investigated the correlation between the cultivated (...) salt field’s size and the magnitude of the cost of funds endured by tenant farmers. The results of the analysis reveal that the average costs of funds borne by tenant farmers are notably high, ranging from 5.24% to 6.71% per month. Surprisingly, these figures exceed the loan interest rates offered by two formal financial institutions: BRI and Bank JATIM. Another significant finding is the positive correlation between the size of cultivated salt fields and the magnitude of the cost of funds borne by tenant farmers. Lastly, there is a clear positive relationship between the credit amount received and the corresponding cost of funds endured by tenant farmers. The substantial costs of funds shouldered by tenant farmers involved in the community salt farming, operated through contract farming systems in Pamekasan Regency, signify inefficiencies within the contract farming structure. It is expected that the government can aid these tenant farmers by disbursing subsidized credits through collaborations with relevant ministries and local formal financial institutions. (shrink)

Nicole Hassoun’s Globalization and Global Justice: Shrinking Distance,Expanding Obligations offers a novel argument for the existence ofpositive rights for the world’s poor, and explores institutional alternativessuitable for the realization of those rights. Hassoun’s argument is contractualist, and makes the existence of positive rights dependupon the conditions necessary for meaningful consent to the global order. Itthus provides an interesting example of social contract theory in the globalcontext. But Hassoun’s argument relies crucially upon the ambiguous natureof the concept of consent. Drawing broadly (...) upon the social contract theorytradition, Hassoun relies upon actual consent theory, democratic theory, andhypothetical consent theory. Each theoretical approach makes use of its ownconception of consent. Rather than select one of these conceptions overthe others, she makes use of all three. In doing so, she introduces a crucialambiguity into the terms that, on her account, a legitimate global order mustsatisfy. The resolution of this ambiguity will circumscribe any effort, on thepart of Hassoun or others, to specify the terms of any global social contract. (shrink)

Most scholars who write on social contract and classical natural law perceive an irreconcilable tension between them. Social contract theory is widely considered the political-theoretic concomitant of modern philosophy. Against the regnant view, The Social Contract in the Ruins, argues that all attempts to ground political authority and obligation in agreement alone are logically self-defeating. Political authority and obligation require an antecedent moral ground. But this moral ground cannot be constructed by human agreement or created by sheer will-human or divine. (...) All accounts of morality as constructed or made collapse into self-referential incoherence. Only an uncreated, real good can coherently ground political authority and obligation or the proposition that rightful government depends on the consent of the governed. Government by consent requires classical natural law for its very coherence. (shrink)

Hegel’s Philosophy of Law deals in theLaw section of the categories: person, property and contract. Research critically reconstructs this theory from a Marxist perspective. In the concept of person, first of all, the singular will is reduced to a solipsist will unrelated to intersubjectivity. Then, the concept of Hegelian property bases the private appropriation of property as the externalization of the singular will. This legal property guarantees the maintenance and reproduction of private property, that is, it will guarantee the private (...) accumulation of capital, Marx will say. Anyway, the theory of the contract would link the autonomy of the contracting wills, however, it is a mere appearance, because, in fact, the owners’ wills are under the domination of the capitalist market, as it is explained in Marx’s Capital. The theoretical deficit of Hegel’s Philosophy of Law in general is that the legal concepts of person and property correspond to the abstract will. Hegel describes the juridical description of the legal system of the modern state as the development of free will that legitimizes the asymmetry of civil society in its socioeconomic inequalities. (shrink)

In The Choice Theory of Contracts, Hanoch Dagan and Michael Heller state that by arguing “that autonomy matters centrally to contract,” Contract as Promise makes an “enduring contribution... but [its] specific arguments faltered because [they] missed the role of diverse contract types and because [it] grounded contractual freedom in a flawed rights-based view.... We can now say all rights-based arguments for contractual autonomy have failed.” The authors conclude that their proposed choice theory “approach returns analysis to the mainstream of twentieth-century (...) liberalism – a tradition concerned with enhancing self-determination that is mostly absent in contract theory today.” Perhaps the signal flaw in Contract as Promise they sought to address was the homogenization of all contract types under a single paradigm. In this Article, I defend the promise principle as the appropriate paradigm for the regime of contract law. Along the way I defend the Kantian account of this subject, while acknowledging that state enforcement necessarily introduces elements — both normative and institutional — for which that paradigm fails adequately to account. Of particular interest and validity is Dagan and Heller’s discussion of contract types, to which the law has always and inevitably recurred. They show how this apparent constraint on contractual freedom actually enhances freedom to contract. I discuss what I have learned from their discussion: that choice like languages, is “lumpy,” so that realistically choices must be made between and framed within available types, off the rack, as it were, and not bespoke on each occasion. I do ask as well how these types come into being mutate, and can be deliberately adapted to changing circumstances. (shrink)