Contracts are widely used in 

commercial law, and form the legal foundation for transactions

across the world. Common exa

mples include contracts for the sale of services and goods (both wholesale and

retail), construction contracts, contracts of carriage, software licenses, employment
contracts, insurance policies, sale or lease of land, and various other uses.
The importance of contracts in contemporary commercial law has given rise to the field of
contract theory, an expansive body of legal theory that addresses normative and conceptual
questions in contract law. One of the most important questions asked in contract theory is why
contracts are enforced. One prominent answer to this question focuses on the economic benefits
of enforcing bargains. Another approach, associated with Charles Fried, maintains that the
purpose of contrac
Private international law is rooted in the principle that every jurisdiction has its own distinct
contract law shaped by differences in public policy, judicial tradition, and the practices of local
businesses. Consequently, while all systems of contract law serve the same overarching purpose
of enabling the creation of legally enforceable obligations, they may contain significant
differences. Accordingly,

, countries have rules to determine the law governing the contract and the jurisdiction for
disputes. For example, European Union Member States apply Article 4 of the Rome I
Regulation to decide the law governing the contract, and the Brussels I Regulation to decide
jurisdiction.