Contracts are entered by private individuals, not by the state. So your pithy claim to instantly demolish the idea is not actually effective.

I don't understand your argument. Contracts can generally be entered into by private individuals as well as by legal entities like the state.

If you're making an argument that the right to contract should be unlimited between individuals (and perhaps unlimited between legal entities), but should be limited when made between individuals and artificial legal entities, that would be an interesting framing to explore. But afaik it's not really a popular one.

(although I don't know that such a framework would actually invalidate what I said, especially for autocratic totalitarian states - each citizen of North Korea could just as easily be said to have a contract with Kim Jong Un himself)