This document discusses the principle of contractual freedom in determining prices in sales contracts, its limits, and the law's intervention to prevent abusive prices.
Extract
[...] Conclusion The balance between contractual freedom and legal regulation is a fundamental pillar in setting prices in a sales contract. In the case where the contracting parties have a great deal of autonomy in determining the price, they must do so with clarity and precision. The law must intervene as soon as the price becomes far removed from economic reality, the gap between price and reality is sometimes reinforced by the subjectivity of value and market fluctuations. The role of commercial law is to prevent the inequity of commercial transactions and to enclose them through several mechanisms such as protection against damage and the fight against anti-competitive practices. [...]
[...] The freedom of the parties in the determination of the price The fixing of the price is based on the principle of contractual freedom, which allows the parties to freely agree on the amount of the transaction according to their own appreciation. In practice, this determination takes into account the economic conditions and the specifics of each market. The contracting parties have a margin of maneuver to establish a price that suits them, thus favoring exchanges and allowing adaptation to market fluctuations. However, there is a fundamental limit to the principle of contractual freedom. [...]
[...] In the economic sector, regulation goes even further by opposing abuses of dominant position and anti-competitive behavior. When an enterprise in a position of monopoly or quasi-monopoly sets prices too high for its clients or, on the contrary, artificially reduces prices to eliminate its competitors, it can be sanctioned for abuse of dominant position. The Competition Authority and the competent courts therefore ensure that a balance is maintained between price freedom and protection against market abuses. The law of obligations establishes a fundamental device to remedy unexpected imbalances: the theory of imprévision. [...]
[...] Speculative products such as cryptocurrencies and certain raw materials such as gold demonstrate the subjectivity of value. This disconnect between price and value can lead to economic distortions and questionable practices. Even if it is regulated, selling at a loss is sometimes used as a commercial strategy to capture a market or eliminate competitors. On the other hand, certain goods are artificially overvalued, such as in speculative bubbles where prices explode without any link to the real value of the underlying asset. [...]
[...] The fixing of prices is primarily a matter of contractual freedom, but this freedom is not without limits. The objective of business law is to ensure a balance between the autonomy of the parties and the need to avoid abuses that would destabilize market regulation. II. The value of the thing sold and the mechanisms for correcting price imbalances A. The subjectivity of value and economic distortions If the price of a good is a contractual element fixed by the parties, its value, on the other hand, is a more complex and often fluctuating notion. [...]
