Contract interpretation is an important subject for lawyers but there are few rigorous economic analyses. We use a … the bases of their respective competencies and the cost of writing a contract meant for a court and the cost of writing a … contract meant for an arbitrator; (e) Courts maximize accuracy in interpretation rather than welfare, which creates a number of …

in piece meal applications) to the study of contract law. As a positive matter, this introduction reveals three … understudied areas: (i) when the equilibrium contract is individually rational but collectively irrational; (ii) the role of courts …, incorporating GET and MD insights into the study of contract law supports broad freedom of contract and formalist interpretative …

individually want to commit themselves to liquidation, and it is collectively better for them than voluntary contract choice or …

has a right to performance or to its gains. Both critics and supporters mistakenly elide the real issue. Contract law … defines a breach as the promisor's failure to take an action the parties' contract requires or to take an action the contract … is what the parties' contract requires. A contract that requires the promisor to trade a specified object or to perform a …

findings for contract theory, the design of commercial contracts, and the need for legal support are discussed …

Market damages - the difference between the market price for goods or services at the time of breach and the contract … price - are the best default rule whenever parties trade in thick markets: they induce parties to contract efficiently and … the breached services but instead are restricted to the market delta. As a result, too few buyers contract ex ante for the …

principal contributions. Our first contribution is to show that parties do not sue because contract law provides no remedies for … parties to make and continue potentially productive collaborations. We aim therefore to begin creating a relational contract … law for a significant part of the economy that functions today without any contract law at all …

foundations of a law merchant for our time. Firms contract to maximize expected surplus and the state permits markets to function … regulate their contracting behavior. A contract law for firms would differ in three major respects from current contract law …. First, such a law would have far fewer default rules and standards than current contract law contains. The high level of …