The basic purpose of contract law is to provide a framework within which individuals can freely contract. The contract can legally bind the contracting parties by the creation of laws that are applicable only to the very individuals that create the contract and its subsequent legally binding laws. English contract law has developed through the ages as a common law that is very heavily based on precedent. Arguably, the pioneers of the common law system must have opted for such a means of dispute resolution, because it is much more amicable and flexible than having a set of codified rules. Harmonization is proving to be more conciliation of legal sovereignty for the common law system than the civil law system.

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