There are limits on those things, though. You can't burn your house down. You can't live in filth. You can't strip mine your land or pollute it. And you can get thrown in jail for failing to fulfill certain contracts, so it can be indirectly illegal. There's also fraud: you can't lie to enter a contract you know you can't fulfill. And it should be illegal to exploit people by offering them contracts they can't be expected to fulfill, even if it currently isn't.
Sure, I can just smash up my stuff or start a risky business. But the reason for that is that there isn't proof that what I'm doing constitutes failure. (They could be very educational activities.)
Sure, I can just smash up my stuff or start a risky business. But the reason for that is that there isn't proof that what I'm doing constitutes failure. (They could be very educational activities.)