The social contract theory is significant in political philosophy as it explores the legitimacy of governance based on the consent of the governed. Philosophers like Hobbes, Locke, and Rousseau proposed that individuals surrender certain freedoms in exchange for protection and order provided by the state. This concept raises critical questions about individual rights, obligations of citizens, and the moral justification for political authority. By emphasizing mutual agreements between rulers and the governed, social contract theory underpins modern discussions about democratic governance and state authority.