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The central assertion that social contract theory approaches is that law and political order are not natural, but human creations. The social contract and the political order it creates are simply the means towards an end—the benefit of the individuals involved—and legitimate only to the extent that they fulfill their part of the agreement.
The Social Contract helped inspire political reforms or revolutions in Europe, especially in France. The Social Contract argued against the idea that monarchs were divinely empowered to legislate. Rousseau asserts that only the general will of the people has the right to legislate, for only under the general will can the people be said to obey ...
Contractualism is a term in philosophy which refers either to a family of political theories in the social contract tradition (when used in this sense, the term is an umbrella term for all social contract theories that include contractarianism), [1] or to the ethical theory developed in recent years by T. M. Scanlon, especially in his book What We Owe to Each Other (published 1998).
The work concerns the structure of society and legitimate government, and is regarded as one of the earliest and most influential examples of social contract theory. [7] Written during the English Civil War (1642–1651), it argues for a social contract and rule by an absolute sovereign.
Popular sovereignty in its modern sense is an idea that dates to the social contract school represented by Thomas Hobbes (1588–1679), John Locke (1632–1704), and Jean-Jacques Rousseau (1712–1778). Rousseau authored a book titled The Social Contract, a prominent political work that highlighted the idea of the "general will".
The First Treatise attacks patriarchalism in the form of sentence-by-sentence refutation of Robert Filmer's Patriarcha, while the Second Treatise outlines Locke's ideas for a more civilized society based on natural rights and contract theory. The book is a key foundational text in the theory of liberalism.
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Contract theory in economics began with 1991 Nobel Laureate Ronald H. Coase's 1937 article "The Nature of the Firm". Coase notes that "the longer the duration of a contract regarding the supply of goods or services due to the difficulty of forecasting, then the less likely and less appropriate it is for the buyer to specify what the other party should do."