Freedom of contract is the ability of parties to bargain and create the terms of their agreement as they desire without outside interference from the government. It is the opposite of government regulation.
In Lochner v. New York, 198 U.S. 45 (1905), while Lochner argued that he had the right to freely contract with the employees, he was fined for breaking a state law that restricted the number of hours that his workers could work.
[Last updated in January of 2023 by the Wex Definitions Team]
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