In the early models of incomplete contract neither party used to invest in the subject matter of the contract; those … realize subsequent to a binding contract, a systematic analysis has been attempted to see - first, how the legal remedies can … role than that has been realized. Focus remains on the ex-ante design of the contract, which would serve as an implicit …

This comment on a contribution by Giesela Rühl sheds more light on two critical aspects of the market for contract law … legal content. Correspondingly, it is questioned whether states really adjust their contract law in response to competition … of contract laws. The economics of network effects explain why it may be more important to use the same law as everybody …

A setting of reliance investments is explored where one of the parties to a contract obtains private information … difficult task to award expectation damages corrrectly to a party with private information who sufffers from breach of contract …

about the asset? How do the disclosure rules of contract law influence the investigation decision? Shavell (1994) showed …-disclosure rule, which requires disclosure of material information, but only after the contract is concluded. We show that this rule … can be more efficient than both voluntary disclosure and mandatory (pre-contract) disclosure …

in deciding cases. Judges in deciding contract cases should therefore try to harness the parties' private information …

This paper examines the relation between state contract law and the use of accounting information in debt contracts …. Contract theory suggests that balance sheet-based covenants resolve debtholder-shareholder conflicts ex ante, whereas income … lenders to exert their control rights ex post if the contract law is more favorable to debtors (i.e., the law is pro …

additional legal cost which induces her to settle privately. A strong reputation concern effectively voids the incentive contract …We examine how the reputation concern of contracting parties affects contractual incentives if information is … transmitted to the public through contract litigation. In a career concern framework, the performance of the long-lived seller is …