An agreement between the people and the government is known as the Social Contract.
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The fundamental of democracy is that government is stated as for the people and by the people. According to that there will be imbibed agreement between the people and government and that is known as the social contract.
The people belong to the society will adhere to certain rules and regulations formulated by the government and these rules and regulations are established as laws. These formulated laws which govern and provide security to people in the society and also protects the right of the people.
No i would not recommend going to court because i'm sure if he has the money to get a lawyer then he should have the money to replace his damaged goods