Final answer:
Contractual rights are based on property rights and allow individuals to enter into agreements with legal recourse. Without contract enforcement, business transactions and economic growth would be hindered.
Step-by-step explanation:
Contractual rights are based on property rights and allow individuals to enter into agreements with others regarding the use of their property, providing legal recourse in case of noncompliance. For example, in an employment agreement, a surgeon provides services to a patient and expects payment. Failure to pay would constitute property theft by the patient. In a society with strong property and contractual rights, the surgeon would have recourse through the court system to extract payment. Without a legal system that enforces contracts, people would be less likely to enter into contracts, which would hinder business transactions and slow economic growth.