Contract Law : A Fundamental Concept Of Relational Contract

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Whither Contract Law Contract law is a fundamental concept of relational contract theory, contracts play an important role in business and has always been an important topic for discussion in sociology, economy, commercial studies, and other sciences, though the term “contract” can have various meanings, it is most often used to denote methods of conducting exchanges, it implies planning the bargain with careful forecasting of its potential consequences and also the use of legal sanctions to ensure the success of the exchange or compensate for its failure. However, contract should not be equaled to the exchange procedure itself. It also should not be applied exclusively to written agreements and documents that accompany the transaction. Contract has three major frameworks, they are business relation framework, the economic deal framework, and contract proper framework. The business relation framework discusses contract law on the basis of social and business connections that exist between the parties at the moment of transaction and are supposed to be preserved after it, the peculiarities of contract determine to what extent the relations are preserved and how the bonds and trust between the parties can be maintained. The economic deal framework discusses mostly the mutual obligations of the parties prescribed by contract law as well as economic outcomes and non-legal outcomes of contract, economic self-interest is one of the most important concepts for this framework.
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