Resolution on Legislation that Interferes with Business Agreements

Resolution on Legislation that Interferes with Business Agreements

Summary

This resolution recognizes that government should not interfere with private business agreements freely and openly negotiated between the parties.

Model Policy

WHEREAS, a privately negotiated contract, either written or oral, is the fundamental basis for doing business in the United States, and;

WHEREAS, business agreements govern the duties and obligations of the parties to the contract, and;

WHEREAS, parties to business contracts have legal remedies available under common law and state and federal statutes to resolve contractual disputes, and;

WHEREAS, the U.S. Constitution and most state constitutions specifically prohibit impairment of contracts freely and openly entered into by the parties, and;

WHEREAS, a party’s ability to privately contract and to mutually negotiate the terms of a business relationship should be honored, and;

WHEREAS, legislation which alters the pre-existing and prospective terms of private contracts serves only to limit a parties’ right to choose its business agreements and abridge the basic principle of freedom to contract;

NOW THEREFORE BE IT RESOLVED, that [insert state here] opposes the enactment of laws that interfere with private business agreements freely and openly negotiated and entered into by parties.

Approved by the ALEC Board of Directors in December 2013.

Keyword Tags: 2013 SNPS, Commerce Insurance and Economic Development Task Force, Regulation