While various liability rules of tort law provide efficient incentives to invest, breach remedies of contract law are claimed to be distortive. Since, at least in Germany, obligations law provides general rules for both contractual and tort relationships such discrepancy seems puzzling. The...

This paper offers an explanation of rationally incomplete contracts, where incompleteness refers to unforeseen contingencies. Agents enter a two-sided moral hazard relationship, in which a commitment to discard parts of the joint resources may be ex-ante efficient. This happens through costly...

Abstract: One of noticeable features of globalization are rapid changes of information systems. If a company wants to be successful, it must carry out many actions having impact on information system. This increasingly concerns multi-national companies, which solve this challenge by...

This contribution discusses the question whether diversity of contract law among the European member states is a barrier to cross-border trade. This question is important in view of the ongoing debate about the need for a unified European private law. It has tried to answer the question by...

Purpose – This paper aims to explain the economic impact of the change in the degree of contract enforcement in the USA since August 2008. This change, from solid enforcement (hard contracts), to uncertain enforcement (fuzzy contracts), is a result of political expediency during an economic...

In the future, European Union is to become a single economic zone. Achieving this goal requires creating good and unified legal grounds for business, which presently are lacking. This paper describes the main problems with conducting business across-borders, evaluates current EC business...