Theories of Contract Law
Theories of contract law fall into three basic categories: formalist, interpretive, and normative. Formalist theories proceed by first purporting to identify a core set of rules that are justified on the ground that they are self-evident axioms, and then purporting to derive the remaining rules by logical deduction from the axioms. Interpretive theories proceed by describing areas of contract law and then determining the social propositions that are to be found in the most fundamental doctrines in the area or that meet some standard of fit with and best justify or rationalize doctrine in the area. Under normative theories the content of contract law depends on the rules that are generated by properly weighted and reconciled policy, moral, and empirical propositions. Unlike the objectives of formalist and interpretive theories, the objective of normative theories is to formulate the best possible rules of contract law.