Economics of Contract Interpretation

Xiaojian Zhao

A chapter in Research in Law and Economics, 2012, pp 61-73 from Emerald Group Publishing Limited

Abstract: The chapter surveys recent developments in economics of contract interpretation. First, we point out the relevance of issue of contract interpretation to contracting problems. We then introduce a general economic model of contract interpretation. It explains why parties write gaps and fairly general terms in contracts, how the court should interpret them, and whether courts should always enforce what contracting parties write. Moreover, we explain why there are contradictions in contracts.

Keywords: Contract theory; incomplete contracts; interpretation (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... 5895(2012)0000025007
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:rlwezz:s0193-5895(2012)0000025007

DOI: 10.1108/S0193-5895(2012)0000025007

Access Statistics for this chapter

More chapters in Research in Law and Economics from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().