Equality and the law of contract: the possible impact of Aristotle's theory of commutative justice

Abstract

The evolution of contract law is motivated by a governing regime’s reception of new social politicies and political ideals. Today constitutions world wide have emphasised the need for democracy based on human rights. In order to achieve such a change within the law of contract it is opportune to re-emphasise the element of equality within the contracting paradigm. Classical contract law departs from the premise of formal equality which supports procedural fairness. It is suggested that the time has come to re-conceive equality in order to be able to manifest substantive fairness. It is suggested to redefine equality within this frame by underpinning contract law with the neo-Aristotelian theory of commutative justice which demands that no one be enriched at another’s expense. Commutative justice supports an equality in exchange and so establishes substantive fairness by demanding a fair price.