Unequal Bargaining Power Undermines Consent and Legitimacy of Contracts
The article delves into how power dynamics impact contract law, showing that unequal bargaining power can lead to unfair agreements akin to coercion. Legal concepts like inequality of bargaining power help define when state involvement is needed to rectify power imbalances in agreements. In cases where both parties have influence, private contracts govern. But in situations like labor agreements or consumer contracts with unequal power, stronger public regulations apply. Bargaining power shapes which promises are legally binding and which require more oversight.