Abstract
This Article examines the legal frameworks for business transactions in the context of economic development, with an emphasis on contract law. A conventional view emphasizes the need for formal enforcement of contracts in economic development. However, a contrasting view holds that contract law and formal enforcement are not important for economic development because the majority of issues and difficulties arising from business transactions are resolved informally, without reference to contractual terms.
This Article considers these views and examines laws and legal frameworks for contracts that are conducive to economic development. Freedom of contract, which is considered a cornerstone of the market economy, also needs to be balanced with public interest, including economic development; for instance, the government may find it necessary to intervene in private contractual relations to meet the needs of economic development, such as expropriation for infrastructure projects.
This Article also examines the balance between freedom of contract and public interest limits on this freedom, a balance that is constantly changing over the course of economic development. Finally, national and international development agencies have promoted law reforms to improve secured transactions to foster economic development in developing ountries. This Article also examines whether the legal promotion of secured transactions would be conducive to economic development.
Recommended Citation
Yong-Shik Lee,
Legal Frameworks for Business Transactions and Economic Development,
44
S. Ill. U. L.J.
273
(2020).
Available at:
https://opensiuc.lib.siu.edu/siulj/vol44/iss2/4