Contract Theory
/ˈkɒntrækt ˈθɪəri/
Definitions
- (n.) A branch of legal scholarship studying how contracts are formed, structured, interpreted, and enforced, often focusing on the economic implications and incentive structures.
Contract theory explains why parties include certain clauses to allocate risk effectively.
Forms
- contract theory
Related terms
See also
Commentary
Contract theory bridges law and economics, emphasizing how contract design addresses information asymmetries and enforcement challenges.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.