SANCTITY OF CONTRACT

SANCTITY OF CONTRACT

sanctity of contract. The principle that the parties to a contract, having duly entered into it, must honor their obligations under it. [Cases: Contracts

1. C.J.S. Contracts ¡ì¡ì 2¨C3, 9, 12.]

¡°[Sanctity of contract] is merely another facet of freedom of contract, but the two concepts cover, to some extent, different grounds. The sanctity of contractual obligations is merely an expression of the principle that once a contract is freely and voluntarily entered into, it should be held sacred, and should be enforced by the Courts if it is broken. No doubt this very sanctity was an outcome of freedom of contract, for the reason why contracts were held sacred was the fact that the parties entered into them of their own choice and volition, and settled the terms by mutual agreement.¡± P.S. Atiyah, An Introduction to the Law of Contract 12 (3d ed. 1981).


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