achieved by writing a contract that specifies a suffciently high quality level. In contrast, the result by Che and Chung (1999 … hybrid case. We also show that if the quality specified in the contract is too low, 'expectation damages' do not necessarily …

recourses. Within this apparent variety lurk two fundamental alternatives. The aggrieved party may (i) 'affirm' the contract and … seek money damages or specific performance; or (ii) 'disaffirm' the contract with the remedy of rescission and restitution …. This simple dichotomy of contract remedies applies broadly in both common law and civil law practice. We show here that …

with moral hazard. The optimal contract displays systematic distortions in information acquisition. Due to a rent effect …

without expost outside options, the optimal contract is static and conditions only on the agent's aggregate final information …

contract that specifies only a fixed quantity and a fixed per-unit price can induce efficient investment if marginal cost is … risk of breaching, the first best becomes attainable with a simple price-quantity contract. …

If a seller delivers a good non-conforming to contract, European and US warranty law allows consumers to choose between … use non-conformity as a pretext for getting rid of a contract he no longer wants. We show that this possibility of …

be implemented even if the supervisor's preferences are unknown. The corresponding optimal contract is similar to what we …

In this paper, firms engage in rent seeking in order to be assigned a governmental contract. We analyze how a change in … the contract length affects the firms' rent-seeking behavior. A longer contract leads to more rent seeking at a contract … assignment stage, as the firms value the contract higher. On the other hand, the contract has to be assigned less often, which of …