574 B
574 B
Contract
Definition
A formal agreement between parties that establishes mutual obligations and rights, which Smith notes is uniquely human as animals do not engage in contractual arrangements, marking a fundamental distinction between human and animal economic behaviour.
Source Chapter
Book I, Chapter 2
Context
Smith uses the absence of contracts in animal behaviour to illustrate that the propensity to truck, barter, and exchange is uniquely human, distinguishing human economic organisation from animal interactions.
Economic Domain
Exchange