Contractual Law

The largest debate with bank bonuses today is that they were formally written in contracts, and therefore the bankers are entitled to them. If contracts are not upheld, it completely undermines the basic workings of capitalism, and an economy cannot grow without faith in business contracts.

For more insight into the philosophical debates on this issue, I suggest looking back at the discussions during the anti-slave movement. The contract argument was the same argument used for why slavery was acceptable.

Liberal contract theory found it very hard to argue against slavery.
- – hence individual could in theory exchange services for life in exchange for maintenance and protection – hence contract theorists have difficulty saying why slavery should be prohibited – have the right to alienate one‟s Property in the Person for as long or as in whatever manner one sees fit – restrictions are an arbitrary paternalism – i.e. freedom to subordinate yourself in any manner that you please