Since Schelling's seminal work on bargaining, it has been a common intuition that two parties cannot form a contract … with positive expectation damages (let alone one that is renegotiation proof), if outside of the contract each would have … no interests in what the other would or could do. After all, how could a contract in of itself create an interest that …

Social preferences and formal contract enforcement are two mechanisms that facilitate performance of an agreement. The … hypothesis that social preferences and contract enforcement are complements. We measure social preferences from a standard Trust … Game and use it is an explanatory variable in a Contract Game. We find that both increased contract enforcement and high …

breach is efficient when performance of a contract generates a negative total surplus for the parties. However, by … different from loss-avoiding breaches. To capture these different motives, we designed a novel game called Contract-Breach Game …

The judgments of English courts regularly state that the principles governing contract interpretation are well … more conservative approach to contract interpretation under which disputes should be resolved primarily on the basis of … finding that the language of the contract is unambiguous is a ruling that absurd consequences will result …