The Design of Contracts and Remedies for Breach
分析合同如何通过违约救济和重新谈判来应对不确定性,表明这些机制能使双方行为接近详细合同下的情形。
In the first part of this article, (hypothetical) contracts providing for all possible uncertain contingencies are considered. In the next part, contracts providing for only some contingencies are examined and are shown to be advantageous, due both to difficulties that could arise in making and enforcing contingent terms and to the presence of implicit substitutes for them. In the following, major part of the article, two of these substitutes for contingent terms are analyzed: remedies for breach, and the opportunity for renegotiation; the existence of both is demonstrated to induce parties to behave approximately as they would under detailed contracts.