Contractsvrijheid

Freedom of contract

Freedom of contract is the principle that parties are in principle free to determine whether, with whom and on what terms they enter into a contract.

Freedom of contract constitutes one of the fundamental principles of Dutch law of obligations. It entails that legal subjects are free to conclude a contract or not, and to determine its content largely at their own discretion, provided this does not conflict with mandatory law, public morals or public policy.

This principle is relevant because it respects the contractual autonomy of the parties and supports the operation of the market economy. At the same time, it is subject to limitations—for instance in the fields of consumer protection, employment law and standard terms—where the legislature has intervened to protect weaker parties.

In practice, when drafting or reviewing contracts, lawyers must always verify that the agreed provisions remain within the bounds of freedom of contract.

“By virtue of the freedom of contract, the parties were able to stipulate the payment terms and the delivery period entirely at their discretion.”

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