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NeCede's

Maxim 6.3.24

An individual's power to contract is unlimited.

Source: Hale v. Henkel, 201 U.S. 43, 74; Weisman, 24u Difficulty 3/5 — Intermediate

Explanation

(English-origin maxim.) A natural person's freedom to enter contracts is unlimited — the power to bind oneself by agreement is an inherent right that no government may abridge without due process of law.

Where this applies

  • A state law tries to prohibit people from entering into certain types of private contracts, and the court strikes it down because an individual's power to contract is an inherent, unlimited right.
  • A city ordinance bans residents from contracting with out-of-state service providers, and a homeowner challenges it as a violation of her unlimited right to contract.
  • A regulation requires government approval before citizens can sign certain business agreements, and a business owner argues this infringes on the inherent freedom to contract.

Legal domains

Cite this maxim

NeCede Max. 6.3.24 — An individual's power to contract is unlimited. — Hale v. Henkel, 201 U.S. 43, 74; Weisman, 24u

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