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Behavioral Law and Economics$
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Eyal Zamir and Doron Teichman

Print publication date: 2018

Print ISBN-13: 9780190901349

Published to Oxford Scholarship Online: June 2018

DOI: 10.1093/oso/9780190901349.001.0001

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Contract Law

Contract Law

Chapter:
(p.237) 7 Contract Law
Source:
Behavioral Law and Economics
Author(s):

Eyal Zamir

Doron Teichman

Publisher:
Oxford University Press
DOI:10.1093/oso/9780190901349.003.0008

This chapter presents an overview of the behavioral analysis of contract law. It first presents a behavioral theory of contracts that highlights the role of values such as promise-keeping and trust, and examines how the role played by those values depends on whether the contract is a product of negotiation or not (i.e., a standard-form contract). The chapter then discusses specific issues in contract law from a behavioral viewpoint—including pre-contractual negotiations (with special emphasis on the role of default rules and other reference points), contract formation, contract interpretation and supplementation, performance, and remedies for breach of contract, including agreed-upon remedies.

Keywords:   contract law, behavioral analysis, contract remedies, standard-form contract, default rules, contract interpretation

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