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 …

that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … costlessly observable, then it should be included in the contract to improve the risk sharing-incentive trade-off under moral … resulting incompleteness of the contract opens the door to controversies and disputes that may lead to judicial procedures. We …