Contract Theory and the Economics of Contract Law

“Contract Theory and Economics of Contract Law” is a chapter of the book “Economic Methods for Lawyers”, which is edited by Emanuel V. Towfigh and Niels Petersen. This book provides an essential introduction to the economic tools, which can usefully be employed in legal reasoning. It is geared specifically towards those without a great deal of exposure to economic thinking and provides law students, legal scholars and practitioners with a practical toolbox to shape their writing, understanding and case preparation.This chapter introduces the concepts of contract theory and applies them to various legal settings