Wednesday, March 17, 2010

Think before you tear up an unwritten contract

"The economic perspective emphasised that, in most commercial situations, it was impossible to specify all the contingencies that might arise. The formal contract was necessarily incomplete. Enforcement by reference to the explicit terms of the contract was therefore uncertain, expensive and largely irrelevant. The effective mechanism of enforcement was the need of the parties to go on doing business with each other."

in reference to: (view on Google Sidewiki)

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