BEHIND THE BARGAIN: SOME SELECTED LEGAL THEORIES IN CONTRACT LAW

Abstract

A contract is an enforceable promise between two or more parties, and when they agree to engage in the promise, they are consenting to create a contractual relationship. Therefore, there are legal theories in contract law that highlight contractual obligations from the drafting of the agreement until its execution. This article aims to provide an in-depth study of the laws governing contracts by exploring the legal theories and doctrines that govern contract law, particularly on understanding how these basic principles form contractual obligations and agreements. A doctrinal legal research is used to analyse the selected legal theories and doctrines, providing an understanding of each theory’s use in the context of contract law. This study reveals that these legal theories affect the formation, interpretation, and execution of an agreement. The analysis indicates that these theories have significant effects not only on the parties involved in the agreements, but also on society as a whole, by reinforcing the principles of fairness and autonomy in legal transactions. These findings have significant implications for understanding contract law, enabling individuals to better navigate and negotiate the complexities of legal agreements before the parties agree to execute the contract. It is hoped that this study will help strengthen the understanding of contract law.