Final answer:
The economic theory of contracts enforces gift promises to maintain economic growth by providing a legal system that offers recourse in cases of noncompliance, thereby fostering an environment conducive to business transactions and economic development.
Step-by-step explanation:
The economic theory of contracts suggests that for economic growth to occur, there must be a legal environment that enforces contracts, including the enforcement of gift promises. Property rights enable individuals to use their property to its fullest potential, which includes the right to trade or sell that property. A legal system guaranteeing the enforcement of contracts means individuals can enter into agreements with confidence, knowing there is recourse if the other party doesn't comply.
Furthermore, the concept of an economy where goods and services are exchanged as gifts under the expectation of future reciprocation, familiar in many traditional societies, indicates an underlying recognition of a system of obligations that can resemble contractual agreements—even if not formally codified.
Contracts, and by extension gift promises, help alleviate the risk of non-payment and non-compliance. This makes it feasible for individuals to engage in transactions and fosters an environment conducive to business activities and economic development. Without such enforcement, the propensity to make and accept gift promises would be substantially diminished, hampering economic interactions and development.