INTRODUCTION
American contract law has long been committed to competitive, private price setting. This commitment is captured in the basic tenets of contract law and competition policy, as well as the political discourse surrounding regulation of the market. Judges and legislators alike are reluctant to preempt private ordering. General contract law allows parties to set the terms of their bargain, including but not limited to price. Each party is assumed to be in the best position to compare the value that she attaches to her present entitlements to the value she would assign the benefits to her from a prospective bargain. While the specific price on which parties agree will depend on their respective bargaining power, the range of potential prices is bounded by each party’s reservation price …
Aditi Bagchi, Fair Terms or Free Terms? The Dual Commitments of Contract Regulation in the United States, American Journal of Comparative Law, volume 74, issue Supplement_1, pages i97-i116, 2026. Published: 24 September 2026.
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