Dominiak and Fegley, ‘Should Libertarians Reject the Title Transfer Theory of Contracts?’

ABSTRACT
… In the present paper we argue that on the grounds of the title transfer theory of contracts typical debt contracts, as the one adumbrated above, would not be legally binding because they presuppose that a promise, not a property title transfer, is the source of contractual obligation. In turn the title transfer theory of contracts does not recognize promises as generating any legal rights or duties. Moreover, because other common types of contracts (such as labor contracts or agreements involving delivery of future goods) are ultimately based – as we demonstrate in our paper – on promises and not on property title transfers, they would also be null under the libertarian law if it embraced the title transfer theory. The economic consequences of such a limitation of the freedom of contracts would be disruptive for the division of labor, market exchanges and wealth creation. Hence, we argue that libertarians should reject the title transfer theory of contracts …

Dominiak, Lukasz and Fegley, Tate, Should Libertarians Reject the Title Transfer Theory of Contracts? (April 3, 2019).

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