Final answer:
Contractual rights are based on property rights, enabling legal agreements like employment contracts that can be enforced legally. The enforcement of contracts is essential for business transactions and economic growth, and parallels to broader agreements in society, such as the social contract.
Step-by-step explanation:
Contractual rights are intrinsically linked to property rights, allowing individuals to make agreements regarding the use of their property with the assurance of legal recourse in case of noncompliance. Using the example of an employment agreement, such as between a surgeon and a patient, the expectation is for the patient to provide payment for the services received. If the patient fails to pay, this would be considered a theft of property, as the property in question is the service provided by the surgeon. The availability of legal enforcement of contracts ensures that the terms of such agreements are met, as parties may seek compensation through the court system. Without such enforcement, the risk of non-payment would make individuals hesitant to enter into contracts, adversely affecting business transactions and economic growth.
Moreover, the existence of a social contract underpins the establishment of governments, where individuals collectively agree to certain conditions and authorities to maintain societal order and provide public goods. Thus, contracts and the systems supporting their enforcement are crucial for both private agreements and the broader social and economic infrastructure.