. We find that it is optimal to write an augmented Cadillac contract that sets one threshold such that it cannot be met …

There is a widely held view that breach of contract is immoral. I suggest here that breach may often be seen as moral …

Both economic and legal theory assumes that sophisticated parties routinely write agreements that maximize their joint … contract provisions are highly path dependent and “sticky,” with future covenants only rarely improving upon previous ones … contracts, external counsel relies heavily on templates and whether or not a contract includes a forum selection clause is …

example of how markets, as opposed to private negotiations, can be used to determine efficient contract terms. -- law and … economics ; incomplete contracts ; construction ; agency theory ; industry studies ; outsourcing ; procurement …

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 …

two economically equivalent contracts - a fixed-term renewable and an open-ended at-will contract. Each contract provides … partners with full flexibility regarding the length and termination of their interaction. When only one contract type is … contract type. However, when both contracts are available offering a fixed-term instead of an open-ended contract is perceived …

; contract theory ; incomplete contracts …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 …

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 …

After a contract is signed, contracting partners may engage in opportunistic behavior that circumvents the original … contract). We use an incomplete contracts approach to show that the anticipation and observability of such behavior are … conditions for the optimality of incomplete contracts, a simple characterization of the second-best contract, and some …