Freedom to Choose a Contracting Party

Agreements between contracting parties are based on the freedom of contract principle. The parties are therefore free to choose whom they want to contract with. The criteria for selecting the contracting party need not be rational.

There are situations where a seller is obliged to sell products or services to anyone in need of them. The freedom to choose the contracting party does not authorize discriminatory activity. For instance, an entrepreneur offering services to consumers cannot choose their customers based on religion or political standing. Most contractual risks can be avoided by choosing the contracting party with care and in borderline cases by e.g. requiring security.