On The Legal Regulation Of Contract Autonomy

Without freedom of contract, there is no real market economy. Without state appropriate intervention, there is no possibility to realize the freedom of contract or the order of market economy. Since any form of freedom is apt to be abused by individuals and groups, freedom should be limited for public welfare, which is the lesson learned from a free society. Market is not a panacea, and under the condition of market economy, the pursue of their individual immediate interest might increase the blindness and localization of market subjects'economic behaviours and cause more "contract breaching" and even "law breaking" actions. These violations jeopardize the overall interests of the state and public interest of the society, and they could disrupt the normal social order as well. So that it is necessary for the state to intervene the contract actions of market subjects to a certain extent. No intervention surely will bring about abuse of contract freedom, generate legal violations, and result in market disorder. However, it should be kept in the mind that state intervention should be appropriate and conditional. Unlimited or unconditional state intervention will damage the autonomy of contract parties.Three chapters are included in the analysis of the legal regulation on freedom of contract. Chapter One introduces the definition and theoretical basis of freedom of contract and its the legal regulation. Freedom of contract means that the contract parties in accordance with law enjoy the full liberty in concluding contracts, selecting the other party, choosing the form of contracts, identifying the contents, changing or terminating contracts, etc. As long as there is no violation of the law, moral value and social order, everyone is entitled to the freedom of contract. The essence of freedom of contract is that the formation of a contract is based necessarily on the agreement of the two parties of the contract. In this chapter, throughout the introduction of the origin and historical development of freedom of contract, several principal are strengthened. There is no absolute or unlimited freedom; there should be no violation of the compulsory provisions of laws; and only the limited freedom can bring into play the function of freedom of contract. Chapter Two analysed the embodiment of freedom of contract in the substantive law of different countries. Since 19th century, freedom of contract has been widely accepted and has become one of the important rules of many countries'substantive law. However, the limitation on freedom of contract is the inevitable outcome of the development of freedom of contract, and it is the self-perfection of modern contract law. The revelation of different countries'legal regulation on freedom of contract to China is also included in this chapter. In Chapter Three, the current situation of freedom of contract in China is analysed in order to highlight that under present circumstances, either in the legislative aspect or in the practical aspect of the contract law, freedom of contract should be valued and guaranteed, though appropriate limitation is needed. Suggestion on the perfection of the contract law is also provided.The aim of the thesis is to analyse the appropriateness of the legal intervention in the freedom of contract. The negotiation between legal intervention and freedom principle in contract law can help promote the advantages and avoid the adverse impacts of the two aspects, so as to create a favorable legal environment for the rapid and sound development of market economy.