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 …

, eds.), surveys major issues arising in the economic analysis of contract law. It begins with an introductory discussion of … contracts. These areas include freedom of contract (i.e., the scope of private power to create binding obligations), formation … of contracts (both the procedural mechanics of exchange, and rules that govern pre-contractual behavior), contract …

promisee to receive no damages. To give efficient incentives to both parties, we propose a novel contract requiring the … contract "anti-insurance" because it strengthens incentives by magnifying risk, whereas insurance erodes incentives by …

This article examines some of the principles and assumptions from classical contract theory that underlie many of the … rules of contract law. It then explores the process by which written contracts are created and entered into. Comparing the … realities of the process involved in creating written contracts with the principles and assumptions underlying contract law …

Contract law and the economics of contract have, for the most part, developed independently of each other. In this … essay, we briefly review the notion of a contract from the perspective of lawyer, and then use this framework to organize … the economics literature on contract. The title, Contracts between Legal Persons, limits the review to that part of …

We relate the design of contract law to the process of development. In this paper, contract law defines which private … levels of effort and trading among agents. The solution to this problem requires a social contract which meets two conditions …: (i) an economywide delegate (judge) responsible for the enforcement of the social contract and (ii) a set of non …

previously thought. Indeed, modeling 'expectation damages' close to legal practice, we show that the default remedy of contract …

contract law for a setting of cooperative investments. While Che and Chung (1999) have shown that expectation damages perform …

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 …