Final answer:
A presumption in law is an assumption made by a court, such as parties agreeing to contract terms or the presumption of innocence until proven guilty. These presumptions are fundamental to enforcing contracts and the right of property owners to use their property as they agree, strengthening economic activity.
Step-by-step explanation:
A presumption in law is an assumption made by a court that something is true until it is proven to the contrary. The burden of proof may lie with the opposite party, who is challenged to rebut the presumption.
For example, in Contract Law, there is a presumption that all parties understand and agree to the terms outlined in a contract. If a party claims they were unaware of certain terms, they must prove their lack of knowledge or misunderstanding. Another example is the presumption of innocence in criminal cases, famously stemming from Roman law, which holds that an individual is innocent until proven guilty.
In the context of contractual rights, this presumption aligns with the concept that individuals are entitled to enforce agreements they've made regarding their property or services. Without enforcement of contracts by legal systems, risks of non-payment could reduce economic transactions and growth.