Private persons may create legally binding obligations on one another through their power to contract.When people enter into contractual agreements,the courts generally enforce their terms.But private law is subordinate to the other sources of law.As such,contracts are unenforceable when they conflict with the other sources of law or public policy.

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Under Private Law

Question 28

Multiple Choice

Under private law:

A) persons may create legally-binding agreements through their power to contract.
B) persons may enter into contracts,but the contracts will not be upheld in court.
C) persons may create their own rules when there is no prior statute.
D) persons may make their own rules only after studying practice of similar precedents.

Correct Answer: