So why do we have contract law? To decide if there is a contract Courts may not wish to enforce all contracts either because They do not trust individuals to act in their own interest(paternalism)or They believe some contracts have large effects on third parties [Perhaps,inability to contract acts as a commitment strategy] Because there is never enough small print to cover everything If the court's default rules are known,parties can leave things out Unless they disagree with the default rule So why do we have contract law? • To decide if there is a contract • Courts may not wish to enforce all contracts either because • They do not trust individuals to act in their own interest (paternalism) or • They believe some contracts have large effects on third parties • [Perhaps, inability to contract acts as a commitment strategy] • Because there is never enough small print to cover everything • If the court’s default rules are known, parties can leave things out • Unless they disagree with the default rule