What concept describes individuals forming a government by mutual agreement?

The concept that describes individuals forming a government by mutual agreement is the social contract. This theory primarily originates from Enlightenment thinkers such as Thomas Hobbes, John Locke, and Jean-Jacques Rousseau, who proposed that a society agrees, either explicitly or implicitly, to form a government in order to achieve certain mutual benefits, such as protection and social order.

Under the social contract, individuals consent to relinquish some of their freedoms and submit to the authority of a governing body, which is tasked with upholding the safety and rights of its citizens. This agreement is foundational in shaping the legitimacy of governmental power, as it is derived from the consent of the governed rather than from divine right or inheritance.

Other options do not pertain to this concept of a mutual agreement for governance. Absolute monarchy refers to a political system where a single monarch holds all power, typically not based on mutual consent. Federalism is a system of governance that divides power between national and regional authorities, while oligarchy is a system where power is concentrated in the hands of a small, elite group. These terms do not encapsulate the principle of individuals uniting under a mutually agreed-upon framework for governance as the social contract does.