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 …

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 …

Under common law, the standard remedy for breach of contract is expectation damages. Under continental law, the …

experiment, we study behavior in a contract farming game without third-party enforcement but with an external spot market as … outside option. Two players, farmer and company, may conclude a contract but also breach it by side-selling or arbitrary …-order enforcement. Moreover, we investigate whether company players offer price premiums to extend the contract’s self-enforcing range …

Nobel for their fundamental contributions to contract theory. This article offers a short summary and discussion of their …

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 …

employment contract. We show that not imposing such an agreement can be beneficial for the principal as the possibility to leave …

Trust between parties should drive contract design: if parties were suspicious about each others' reaction to unplanned … across space and over time, we find that lower trust increases contract completeness. Not only the complexity but also the …-analysis-based measures of contract completeness and do not arise in falsification tests. At the clause level, we find that non …