Actual or hypothetical compact between the ruled and their rulers. The original inspiration for the notion may derive from the biblical covenant between God and Abraham, but it is most closely associated with the writings of Thomas Hobbes, John Locke, and Jean-Jacques Rousseau. Hobbes argued that the absolute power of the sovereign is justified by a hypothetical social contract in which the people agree to obey him in all matters in return for a guarantee of peace and security, which they lack in the warlike “state of nature” posited to exist before the contract is made. Locke believed that rulers also were obliged to protect private property and the right to freedom of thought, speech, and worship. Rousseau held that in the state of nature people are unwarlike but also undeveloped in reasoning and morality; in surrendering their individual freedom, they acquire political liberty and civil rights within a system of laws based on the “general will” of the governed. The idea of the social contract influenced the shapers of the American Revolution and the French Revolution and the constitutions that followed them.

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Agreement between two or more parties that creates for each party a duty to do something (e.g., to provide goods at a certain price according to a specified schedule) or a duty not to do something (e.g., to divulge an employer's trade secrets or financial status to third parties). A party's failure to honour a contract allows the other party or parties to bring an action for damages in a court of law, though arbitration may also be pursued in an effort to keep the matter confidential. In order to be valid, a contract must be entered into both willingly and freely. A contract that violates this principle, including one made with a legal minor or a person deemed mentally incompetent, may be declared unenforceable. A contract also must have a lawful objective.

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