Final answer:
A contract in which both parties bargain in good faith is an example of a social contract. It is a metaphorical agreement where individuals collectively give up some freedoms in the state of nature and delegate the authority and power to enforce the contract to the state.
Step-by-step explanation:
A contract in which both parties bargain in good faith is an example of a social contract. It is a metaphorical agreement where individuals collectively give up some freedoms in the state of nature and delegate the authority and power to enforce the contract to the state. This concept was proposed by philosophers like Hobbes, Locke, and Rousseau. Examples of social contracts include government contracts and employment agreements.