This paper provides an analysis of how concepts pertinent to legal contracts can influence certain aspects of their digital implementation through smart contracts, as inspired by recent developments in distributed ledger technology. We discuss how properties of imperative and declarative languages including the underlying architectures to support contract management and lifecycle apply to various aspects of legal contracts. We then address these properties in the context of several blockchain architectures. While imperative languages are commonly used to implement (...) smart contracts, we find that declarative languages provide more natural ways to deal with certain aspects of legal contracts and their automated management. (shrink)

The paper outlines ongoing research on logic-based tools for the analysis and representation of legal contracts, of the kind frequently encountered in large-scale engineering projects and complex, long-term trading agreements. We consider both contract formation and contract performance, in each case identifying the representational issues and the prospects for providing automated support tools.

Translations of legal contracts into formal specifications that can be used for assisted reasoning are currently gaining considerable attention in AI and law. Yet, the conceptual intricacy of some of the normative notions involved in legal contracts continues to provide significant challenges to formalization; in accordance with this, there is a need for developing general logic frameworks which allow for an appropriate analysis of the fundamental components of a contractual situation. In the present work, we focus on the (...) representation of decisional and operational roles played by possibly distinct contracting parties. We provide a flexible framework, which extends term-modal logic, where such roles can be effectively formalized and emphasized. (shrink)

According to some commentators of the Iranian Civil Code, the definition of sale stated in Article 183 is influenced by Article 1101 of French Civil Code. They have concluded that the essence of sale is confined to mutual consent, i.e. the sale would not be valid without the consent of either party. They have taken even a step further and considered the contents of Article 338 of the civil code, which describes contract of sale, contradictory to Article 183 and (...) argued that the sale of a specified concrete object is not contained in Article 183 while the sale of unascertained goods is obliged to that article. They believe that the definition of Article 183 of civil code excludes not only all commitments, but also swap contracts because there are two mutual commitments and two agreeing legal contracts in a swap contract while there is no mentioning of them in Article 183. However, the objections are not rightfully lodged because first, the contracts and obligations are not incompatible with the definition of Article 338 as the seller and the buyer within a contract of sale are obliged to give authority to the other party over the object of sale or the price. It means that there are two commitments and the obligation of the seller to give authority over the object of sale appears in two ways: dominion over concrete object while making a transaction and dominion over non-specified object with the obligation that it does not attend to fulfil possession by the time of the sale. Secondly, Article 183 contains the phrase “their acceptance” which includes swap contract too because this phrase indicates that the acceptance is mutual. (shrink)

In Ḥanafī legal thought, ta‘ātī (mutual delivery of goods and price) has been seen as a sales contract without the need for an additional legal transaction. This situation raises the question of whether the delivery transaction took place after a void (bāṭil) or invalid (fāsid) sales contract can be considered as a new contract that is revealed through ta‘ātī. In this study, which we aim to answer the aforementioned question, first of all, the issue of (...) what kind of relationship is established between the definition of the sales contract and the legitimacy of the ta‘ātī is discussed. Secondly, the relationship between the principles of “When something is void, what is implicit in that thing is also void.”, “What builds on what is invalid is also invalid” and the delivery transaction that took place after a void or invalid contract is discussed. Thirdly, it has been discussed whether the acceptance of the delivery transaction after a void or invalid contract as a new contract is dependent on the fact that the first contract has been legally terminated. In Ḥanafī thought two approaches have emerged regarding the relationship between ta‘ātī and void or invalid contract. According to Ḥanafī jurists based on the above-mentioned two principles, the delivery transaction that took place after a void or invalid contract is not a new contract. The fact that the delivery transaction becomes a new contract depends on the fact that the first contract was terminated in a legal way. In the approach of Ḥalvānī and Kāsānī, the fact that the delivery transaction that took place after a void or invalid contract gains the quality of a new contract is not dependent on the fact that the first contract is legally terminated. This approach is very important in terms of making it possible for the idea that “Delivery that took place after a void or invalid contract has the quality of a new contract.” to attribute the classical Ḥanafī thought. (shrink)

The phenomenon of contract cheating presents, potentially, a serious threat to the quality and standards of Higher Education around the world. There have been suggestions, cited below, to tackle the problem using legal means, but we find that current laws are not fit for this purpose. In this article we present a proposal for a specific new law to target contract cheating, which could be enacted in most jurisdictions.We test our proposed new law against a number of (...) issues that would need to be considered before any legal approach could be successful; would changing the legal status of contract cheating make it less likely to happen? Could this be achieved in a specific way? If so, who should actually be prosecuted and what offence are they committing? Would it actually address the causes of contract cheating? We suggest some answers to these questions, but then also identify a number of unintended potential consequences. We therefore additionally consider whether a legal approach is possible or even desirable.We conclude that a legal approach to contract cheating is possible, and, on balance, appropriate. Using UK law as an example, we offer a specific suggestion to lawmakers, around the world, for how this might be achieved, and conclude that the most successful approach would be to focus largely on a law targeting the providers of contract cheating, in particular commercial services. (shrink)

Sociological Jurisprudence and Legal Economics: Risks and Rewards Terence Daintith gunther teubner Firenze Introduction Contract and Organisation - these ...

The aim of this research was to analyse Chinese legal terminology related to limits of freedom of contract in juxtaposition with other European and Asian legal systems. The study was limited to state, law and publicity. The purpose of the comparison was to add a broader perspective to the research on Chinese legal terminology. The research material included civil codes and contract laws of selected European and Asian countries. Among the European codes the great ones (...) were obviously included – French, Austrian and German, as well as those of less importance, but still relevant in Europe, such as Italian, Spanish codes or Swiss Law of Obligation, and also codes of Slavic and simultaneously post-socialist countries, like Poland, Czech Republic and Russia. In the case of Asia, the codes of China, Japan, South Korea and Vietnam were analysed. The question asked was whether the terminology used in Chinese law is unique or repeated and if so, how common it is in comparison with other legal systems. The research methods included the parametric approach to legal terminology comparison and techniques of legal construction (interpretation). (shrink)

Thomas hobbes's papers at chatsworth prove that he had considerable knowledge of legal concepts. apparently he used the chatsworth copy of christopher saint german's "doctor" and "student" in developing his concept of contractual obligation. realizing this is useful for a careful analysis of hobbes's theory of why contracts oblige. the crucial problem is hobbes attempt to explain why we should perform a disadvantageous contract. he suggests different motives in all three of his major political works. in "leviathan" he (...) finally settles on the argument that it is always to our long-term advantage to fail to keep contracts. this argument is not very satisfactory, but it is the best that he can come up with given his account of human nature. (shrink)

Countless contracts have been undermined by the COVID-19 pandemic of 2020 as well as government orders to contain it. Flights have been canceled, concerts have been called off, and dorms have been closed, just to name a few. Do these all count as breaches of contract—or are the parties excused due to the extraordinary circumstances? And how should the losses be allocated between the parties? The law provides one set of answers to these questions; ethics offers another. With a (...) focus on American law and Jewish ethics, this paper shows that the two systems are in accord with some respects and differ in others: Both law and Jewish ethics would excuse a party who cannot complete his contract due to a force beyond his control, like the COVID-19 pandemic. Yet Jewish ethics would require that the excused party still be paid, while American law would not. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Beginning in the 20s of the last century, historical research into Eiximenis's life and writings has thrown into relief his contribution to the language and political ideas of the kingdoms and towns of the Catalan-Aragonese Crown. Of fundamental importance has been the work of medievalists from North America, and in particular that of Canadian scholars during the last decades of the twentieth century.More recently, a number of studies have (...) underlined the decisive contribution of Eiximenis – a representative of a European textual tradition among friars of the Minor Observance that extended from Oxford to Florence – to the establishment of a system of ethical values for the economic sphere and for trading practices that continued to be developed by members of the Franciscan Order throughout the high middle ages and early modern period.As a follow-up to these studies, I believe that a program of textual analysis and systematic investigation of Eximenis's work could provide further information about the range and significance of his political thinking, based as it was on applying, in typically Franciscan fashion, experimental observation to gain an understanding of the nature both of the societas and of the market, the latter being thought of as a defining expression of civic institutions in Western Europe. This same experimental approach can be found in Franciscan thinking from the catalan-aragonese realm not only in the work of Arnau de Vilanova and Ramon Llull, but also in that of Pere Tomas and Anselm Turmeda, two figures fundamental to the preparation and political engagement of the Friar of Girona.1. The concept of contractIn Eiximenian texts, the communitarian dimension is defined as one that is of necessity based on contract. It is expounded in the long opening section of the Dotzè del Crestià, where Eiximenis outlines the political value of the civitas, as well as setting out the elements that constitute civic life.Borrowing from Aristotle's discussion in the First Book of the Politics , the Franciscan friar strongly affirms that one of the principal reasons behind the civitas is the "necessitat de contractes," the need for contracts. Going far beyond the highly qualified analysis of money and coinage set out by the Greek philosopher, Eiximenis here maintains that the aims of the community is the profit that the citizenry realises by means of different forms of exchange, through buying and selling, through contracts, and through trading. Moreover, that the binding nature of trading-contracts is a matter of concern not of the city in the narrow sense, but of each and every kind of human social organization.Even before contract-law, or, better said, conventional or foral procedure, Eiximenis views the idea of the contract as an essential part of the ethical and organizational principles of living as a community, the essence of the civitas. And it is of great significance that when he is discussing the value and function of money, Eiximenis chooses to call the sorts of exchange that to-day we term economic or financial les civils conmutacions, or exchanges between citizens.These lexical hints allow us to capture the strength of meaning and value, the ethical perspective by which the Gerundense defines the inextricable union of the market and civic society. But it is not only an analytical perspective, significant as that is, that unites market and civic ethics; we are presented with a value judgment of contract and economic exchange as elements that determine the very idea of civilitas.The "bona civilitas," an expression that can be roughly translated as "good civic culture," is in fact founded on a concept of economic ethics that has as its distinguishing feature the logic of profitable exchange, of the distribution of that profit, of contractualization, and of the circulation of goods and money. It is characterised by redefining the anti-value of avaritia as a real.. (shrink)

There is a broad consensus amongst law firms and in-house legal departments that next generation "Legal Tech" - particularly in the form of Blockchain-based technologies and Smart Contracts - will have a profound impact on the future operations of all legal service providers. Legal Tech startups are already revolutionizing the legal industry by increasing the speed and efficiency of traditional legal services or replacing them altogether with new technologies. This on-going process of disruption within (...) the legal profession offers significant opportunities for all business. However, it also poses a number of challenges for practitioners, trade associations, technology vendors, and regulators who often struggle to keep up with the technologies, resulting in a widening regulatory "gap." Many uncertainties remain regarding the scope, direction, and effects of these new technologies and their integration with existing practices and legacy systems. Adding to the challenges is the growing need for easy-to-use contracting solutions, on the one hand, and for protecting the users of such solutions, on the other. To respond to the challenges and to provide better legal communications, systems, and services Legal Tech scholars and practitioners have found allies in the emerging field of Legal Design. This collection brings together leading scholars and practitioners working on these issues from diverse jurisdictions. The aim is to introduce Blockchain and Smart Contract technologies, and to examine their on-going impact on the legal profession, business and regulators. (shrink)

To create a programming environment for contract dispute resolution, we propose an extension of assumption-based argumentation into modular assumption-based argumentation in which different modules of argumentation representing different knowledge bases for reasoning about beliefs and facts and for representation and reasoning with the legal doctrines could be built and assembled together. A distinct novel feature of modular argumentation in compare with other modular logic-based systems like Prolog is that it allows references to different semantics in the same module (...) at the same time, a feature critically important for application of argumentation in legal domains like contract dispute resolution where the outcomes of court cases often depend on whether credulous or skeptical modes of reasoning were applied by the contract parties. We apply the new framework to model the doctrines of contract breach and mutual mistake. (shrink)

Fiester and Yuan (2023) address an important, hitherto underdiscussed issue: ethical hazards of behavior contracts linked to patients’ and families’ demeanor in interacting with the healthcare team...

Cicero’s first criminal speech, Pro Roscio Amerino, gained acquittal for his client but also presented Cicero himself as an advocate of legality at a time of great political turmoil and uncertainty. He emphasizes the importance of good-faith contracts to the maintenance of civil society, while demonstrating that his opponents have abused the contracts of societas and mandatum in persecuting Roscius. Cicero’s positive model is his teacher Scaevola—murdered during the civil war and advocate of good-faith contracts and of the broader ideal (...) of vitae societas, a metaphorical contract that embodies the values of civil society which Cicero shares. (shrink)

Under the market economy, a contract serves as the main regulatory instrument of mutual rights and obligations of private law subjects. Many different types of contracts allow people to satisfy their needs and to achieve the desired results. Most contracts are concluded subject to established common criteria, yet almost every type of contract has also its own specifics. The article examines the marriage contract with its particular features (subjects, content, etc.) and analyses its complex nature and its (...) main purpose. The institution of marriage contract is relatively poorly covered by academic research in Lithuania (academic papers on legal science provide only patchy analysis of these contracts); case law in the resolution of arguments originating from such contracts is also limited and thus not completely established. Despite controversial attitudes towards the purpose of marriage contract, the numbers of concluded prenuptial and postnuptial agreements increase from year to year, i.e. more and more individuals express their will to specify the content of property obligations and to define the legal regime of property. These contracts are usually concluded to avoid unpredictable division of property in case of divorce and to protect family members against possible future claims of third parties (creditors). Bearing in mind that legal provisions governing marriage contracts are subject to diverse interpretation, analysis of this institution appears timely and relevant. (shrink)

The combined use of computers and telecommunications and the latest evolution in the field of Artificial Intelligence brought along new ways of contracting and of expressing will and declarations. The question is, how far we can go in considering computer intelligence and autonomy, how can we legally deal with a new form of electronic behaviour capable of autonomous action? In the field of contracting, through Intelligent Electronic Agents, there is an imperious need of analysing the question of expression of consent, (...) and two main possibilities have been proposed: considering electronic devices as mere machines or tools, or considering electronic devices as legal persons. Another possibility that has been frequently mentioned consists in the application of the rules of agency to electronic transactions. Meanwhile, the question remains: would it possible, under a Civil Law framework, to apply the notions of “legal personhood” and “representation” to electronic agents? It is obvious that existing legal norms are not fit for such an endeavouring challenge. Yet, the virtual world exists and it requires a new but realistic legal approach on software agents, in order to enhance the use of electronic commerce in a global world. (shrink)

In this article it is argued that Scottish contract theory retains distinctive features which are not shared with the Common Law. The origins of this theory lie in the ‘mixed' nature of its contract law, a mixture established principally through the writings of Stair. That mix is not merely the traditional mix of Roman and Common Law typical of mixed legal systems, but a mix also of natural law ideas with a respect for the rational and free (...) choices of the parties. Respect for free will is seen not just in certain contractual rules such as the absence of a requirement of consideration, but in the existence of a separate obligation of unilateral promise. It is argued that the nature of Scottish contract theory lends itself more easily to defence of the will theory, and that there has been an absence of enthusiasm for the adoption of competing theories of contract in Scotland. It is suggested by way of conclusion that some of the benefits provided by the Scottish structure could be of use to future development of the Common Law, albeit that the Common Law has typically shown itself averse to legal borrowings from its nearest neighbour. (shrink)

In 2017, the global Blockchain technology market was predictedto reach 339.5 million U.S. dollars in size and is forecasted to grow to 2.3billion U.S. dollars by 2021. The smart contract has an increasing role ingoverning the legal relationship between the interested parties. This researchexplores the current position of smart contracts in Malaysia and the viabilityof the Malaysian framework in handling the latest development. This researchadopts the qualitative and doctrinal legal approaches in analysing the currentlegal practice, the relevant (...) statutes and the viability of the Malaysian legalframework. These approaches are necessary to be carried out in ensuring theworkability of smart contracts in Blockchain. Additionally, the practices ofsmart contracts from international experiences are collected as case studies inthis research. As a part of the findings, the researchers found that smart contractsare more or less similar to traditional contracts. Therefore, the requirements asstipulated under the Contract Act 1950 that are applicable in Malaysia mustbe followed accordingly. In this study, based on the nature of Blockchain technology, the researchers evaluate the current position of Malaysian laws indealing with smart contracts. Additionally, the researchers also looked at theacceptable legal practice of smart contracts in Malaysia. (shrink)

Business companies are at an unconventional and non-material risk that threatens their business reputation or brand potential in the market. (Cyber Risk), so insurance companies have introduced specialized insurance contracts designed to mitigate the impact of this devastating risk. The need for commercial companies to purchase cyber risk insurance policies has recently increased due to persistent and increasing threats to their operating systems containing the company's database and customers. It has become necessary for businesses to take note of how the (...) cyber risk policy can be covered. At the same time, it is difficult to identify common exceptions in cyber risk insurance contracts because it is relatively recent. In addition, there is a kind of confusion between the insurance contract of cyber risk and some contracts that you may suspect on the other hand. (shrink)

In this paper we cast light on one form of dishonest behaviour in academia – contract cheating services. We examine how an agreement between a student and a contract cheating services provider is viewed from ethical and legal perspectives. For this purpose we carried out an analysis of contract cheating services as an agreement which, in Lithuania, is currently facing the challenge of implementing laws regarding contract cheating services as a violation of academic ethics. Taking (...) into consideration recent jurisprudence, together with social media articles, we conclude that while any agreement for contract cheating services is severely criticized in terms of ethics, the courts either do not regard this type of agreement as a violation of legal norms, or they inadequately apply legal remedies when such an agreement is deemed to be void. (shrink)

The contract review process can be a costly and time-consuming task for lawyers and clients alike, requiring significant effort to identify and evaluate the legal implications of individual clauses. To address this challenge, we propose the use of natural language processing techniques, specifically text classification based on deontic tags, to streamline the process. Our research question is whether natural language processing techniques, specifically dense vector embeddings, can help semi-automate the contract review process and reduce time and costs (...) for legal professionals reviewing deontic modalities in contracts. In this study, we create a domain-specific dataset and train both baseline and neural network models for contract sentence classification. This approach offers a more efficient and cost-effective solution for contract review, mimicking the work of a lawyer. Our approach achieves an accuracy of 0.90, showcasing its effectiveness in identifying and evaluating individual contract sentences. (shrink)

A hypothetical scenario is presented in which a female patient is admitted to a private hospital to undergo a mastectomy and breast reconstruction. The surgeons and anaesthetists conducting the different procedures charge three times the medical aid rates. When the patient asks what the co-payments are likely to be, she is informed by the doctors’ accounts section that they can only provide this information after each procedure. The patient’s medical scheme also advises her that it cannot determine the likely co-payments (...) unless she completes the assessment form sent to her. The form requires her to include the costs reflected against the relevant ICD10 codes. The patient cannot complete the form because the doctors’ accounts sections have not informed her about the proposed procedures and the likely costs of each. This article builds on a previous article discussing doctors’ overarching responsibility to disclose medical treatment costs in advance. The present article outlines the legal requirements in the South African Constitution, the National Health Act and the Health Professions Act, and refers to the Promotion of Access to Information Act and Consumer Protection Act. Similar to the earlier article, this article addresses the ethical requirements of the Health Professions Council of South Africa and the internationally recognised biomedical ethical principles. Furthermore, it also refers to the National Patients Charter, the government’s policy document on health care services. (shrink)

Anthony Kronman’s 1980 article “Contract Law and Distributive Justice” has become something of a classic in the philosophy of private law. Kronman argued that any theory of contract which relied upon voluntariness was necessarily concerned with distributive justice, since voluntariness was itself a distributive notion. The argument targeted libertarian accounts of contract. Given the distributive nature of voluntariness, the claim went, libertarians could not give an adequate account of contract without violating their own injunction against appeal (...) to the “fair division of wealth among the members of society”(472). It is easy to see why Kronman’s article attracted so much attention. The idea that voluntariness isnotdistributive is central not just to libertarianism but to liberalism generally. Kronman’s critique, though targeting a not terribly common species of liberalism, threatens the genus itself. (shrink)

This paper shows that the law, in subtle ways, may set hitherto unrecognized incentives for the adoption of explainable machine learning applications. In doing so, we make two novel contributions. First, on the legal side, we show that to avoid liability, professional actors, such as doctors and managers, may soon be legally compelled to use explainable ML models. We argue that the importance of explainability reaches far beyond data protection law, and crucially influences questions of contractual and tort liability (...) for the use of ML models. To this effect, we conduct two legal case studies, in medical and corporate merger applications of ML. As a second contribution, we discuss the trade-off between accuracy and explainability and demonstrate the effect in a technical case study in the context of spam classification. (shrink)

Contract theories may be a useful analytical tool for understanding and explaining contract, as well as for facilitating orientation in a complex and often fragmented legal regulation. The article presents main understandings of contract in various European jurisdictions: contract as free assumption of obligation, contract as a bargain based on the idea of consideration, contract as free assumption of obligation based on sufficient causa. The article inquires as to how universal those theories are, (...) what are the recent trends in the development of European contract law, what philosophy of contract underlies the soft law instruments, such as UNIDROIT Principles of International Commercial Contracts or Principles of European Contract Law (PECL), what is the stance of the Draft Common Frame of Reference (DCFR) in regard to the concept of contract. Under the law of Lithuania the definition of contract comprises elements found in several European countries, but it is argued that the new Lithuanian Civil Code has not received any model in its pure form. However it seems that the prevailing view understands contract as juridical act, as freely assumed obligation and meeting of parties’ intentions with the aim to create legal effects. Following the position of soft law instruments in regard to the elements of the contract, Lithuanian law (at least in its statutory form) does not have any explicit additional requirements, such as consideration or causa. (shrink)

The pervasive use of contracts in healthcare is a source of unease for many healthcare ethicists and patient advocates. This commentary examines the use of such contracts with individuals in rehabilitation settings who have complex medical and behavioural issues. The goals of this paper are to examine the many factors that can lead to contract use, to discuss some legal and ethical implications of contract use, and to assess contract use in light of concerns about health (...) equity. The paper concludes with some practical alternatives to the use of such contracts, and refers specifically to tools that might be borrowed from the field of behavioural therapy. (shrink)

The purpose of this article is to examine the process of deterritorialization of legal concepts embedded in international commercial contracts. Typically written in English, these contracts often incorporate concepts derived from common law jurisdictions, given that English is the language of expression for the common law tradition. This underscores the intrinsic interconnection between language and underlying legal concepts. While parties involved in contract drafting may sometimes mitigate this connection by using terms and clauses that do not immediately (...) evoke common law associations, the use of English as the medium for conveying concepts in international commercial contracts does not necessarily facilitate this process. Consequently, legal concepts rooted in specific traditions adapt to new contexts shaped by the linguistic, cognitive, cultural, and legal backgrounds of the contracting parties, those tasked with interpreting the contracts, and the law governing the agreements. This paper illustrates the dynamics of this process through examples drawn from international commercial contracts, focusing on both individual terms and entire contractual clauses. These examples highlight how legal concepts, as expressed in these contracts, evolve within new environments shaped by diverse linguistic, cognitive, cultural, and legal determinants. (shrink)

The ayn-dayn distinction in Ḥanafī legal thought shapes directly many regulations related to the law of obligations, from the legitimacy conditions of the contracts to the principles of compensation obligation. Three aspects are important in understanding the formative function of this distinction. The first of them is what is the conceptual content of ayn and dayn in Ḥanafī terminology. The second of them is what kind of relationship there is between the qualities of goods and ayn and dayn. The (...) third of them is what kind of differences exist between ayn and dayn in terms of their effects on legal regulations. According to Ḥanafī terminology, in a debt relationship, dayn means goods that have not yet been delivered to the creditor, whether they are in the hands of the debtor or not, in terms of goods (gold, silver and money) that are not suitable for determination by determining. Dayn represents the identical goods that is under the responsibility of the debtor in terms of non-existing identical goods. In terms of existing identical goods, dayn represents the identical goods that exist in clusters but have not yet been determined individually. Non-standard goods are goods that are not suitable for dayn because they are not suitable for abstraction from their material existence. Ayn represents the existing and determined goods in terms of non-standard goods and existing identical goods. Ayn represents the goods received by the creditor in terms of gold, silver, money and identical goods that are in the debtor's obligation from the beginning. What stands out among the differences between ayn and dayn is that although destruction and damage can be considered for ayn, they cannot be considered for dayn. In terms of some legal regulations, establishing a relationship between strict liability and dayn and between fault liability and ayn is a result of this. The other important differences between ayn and dayn are the fact that dayn is only determined by delivery and that postponement and remittance are specific to the dayn. (shrink)

Contract as Promise is a study of the philosophical foundations of contract law in which Professor Fried effectively answers some of the most common assumptions about contract law and strongly proposes a moral basis for it while defending the classical theory of contract. This book provides two purposes regarding the complex legal institution of the contract. The first is the theoretical purpose to demonstrate how contract law can be traced to and is determined (...) by a small number of basic moral principles. At the theory level the author shows that contract law does have an underlying, and unifying structure. The second is a pedagogic purpose to provide for students the underlying structure of contract law. At this level of doctrinal exposition the author shows that structure can be referred to moral principles. Together the two purposes support each other in an effective and comprehensive study of contract law. This second edition retains the original text, and includes a new Preface. It also includes a substantial new essay entitled Contract as Promise in the Light of Subsequent Scholarship--Especially Law and Economics which serves as a retrospective of the work accomplished in the last thirty years, while responding to present and future work in the field. (shrink)

This article deals with legal corporate behavior and corporate structures. It discusses the activity within and between business units. It explains studies on corporate behavior in a threefold order—the first order deals with the gap between formal legal contracts and informal corporate covenants; the second order deals with norms that govern alternative contractual norms; and the third order exclusively deals with the economic aspects of the study. The legal-economic approach tries to identify the gap between actual behavior (...) and ideal behavior. This article demonstrates that investors are claimed to be non-interventionist and only the investor's direct involvement necessitates direct monitoring. It examines new arenas of contract practice such as Internet shopping and e-commerce more generally. (shrink)

This article deals with legal corporate behavior and corporate structures. It discusses the activity within and between business units. It explains studies on corporate behavior in a threefold order—the first order deals with the gap between formal legal contracts and informal corporate covenants; the second order deals with norms that govern alternative contractual norms; and the third order exclusively deals with the economic aspects of the study. The legal-economic approach tries to identify the gap between actual behavior (...) and ideal behavior. This article demonstrates that investors are claimed to be non-interventionist and only the investor's direct involvement necessitates direct monitoring. It examines new arenas of contract practice such as Internet shopping and e-commerce more generally. (shrink)

Based on ethnographic and linguistic analyses, this article describes the discourse-related practices and interactional role behaviours of an experienced lawyer who assumed a pivotal role in the negotiation of a Mergers-and-Acquisitions type transaction vis-a-vis a number of other legal and financial professionals. Set in an international business context, all communication took place in English and for the most part via email. Complex discursive processes facilitated close interdisciplinary engagement and, more particularly, required that a single individual assume a key interactional (...) role to oversee and advance the negotiation activities. This pivotal role entailed the strategic use of language and discourse to negotiate, account for, and justify the various stages of the negotiation. In addition to textual analyses of the negotiated contract and attendant emails, interviews were conducted with the principal lawyer and her senior partner in order to examine the textual findings grounded in the organisational context of a law firm and produce an ontology of this negotiation process. These research findings could be used to assist novice lawyers and business professionals to understand some of the discourse strategies and interactional roles that are often so critical for commercial contract negotiation activities. (shrink)

We show that the fundamental legal structure of a well-written financial contract follows a state-transition logic that can be formalized mathematically as a finite-state machine (specifically, a deterministic finite automaton or DFA). The automaton defines the states that a financial relationship can be in, such as “default,” “delinquency,” “performing,” etc., and it defines an “alphabet” of events that can trigger state transitions, such as “payment arrives,” “due date passes,” etc. The core of a contract describes the rules (...) by which different sequences of events trigger particular sequences of state transitions in the relationship between the counterparties. By conceptualizing and representing the legal structure of a contract in this way, we expose it to a range of powerful tools and results from the theory of computation. These allow, for example, automated reasoning to determine whether a contract is internally coherent and whether it is complete relative to a particular event alphabet. We illustrate the process by representing a simple loan agreement as an automaton. (shrink)

In the present paper we argue that the theory of contracts embraced by many libertarian scholars and relied upon by them in sundry important debates (e.g. over morality of the fractional reserve banking or loan maturity mismatching etc.), that is, the title transfer theory of contracts (TTT) should be rejected as not being able to account for the binding force of future-oriented contracts, including contracts deemed enforceable by those scholars themselves. The TTT claims that the only contracts that should be (...) legally binding are these where the debtor’s failure to abide by them constitutes a violation of the creditor’s private property rights. However, as we argue, no default of the debtor in a future-oriented contract can in itself amount to such a violation. (shrink)

Private law as an open legal order: understanding contract and tort as interactional law This article puts forward the claim that private law, and especially contract and tort, is the area of law that most clearly shows how law depends on social interactions. Taking its cue from Lon Fuller, interactional law is presented as a form of law that depends on informal social practices. Using tort and contract cases, it is argued that this implies that law (...) is in open connection to moral norms and values, and that law cannot be understood without taking into account people’s everyday reciprocal expectancies. (shrink)

The legal status of the human body is hotly contested, yet the law of the body remains in a state of confusion and chaos. Sometimes the body is treated as an object of property, sometimes it is dealt with under the rubric of contract, and sometimes it is not conceived as property at all, but rather as the subject of privacy rights. Which body of law should become the law of the body? This question is even more pressing (...) in the context of current biomedical research, which permits commodification and commercialization of the body by everyone except the person who provides the “raw materials.” The lack of property protection for tangible parts of the human body is in stark contrast to the extensive protection granted to intellectual property in the body in the form of patents upon human genes and cell lines. Moreover, even courts that reject ownership claims on the part of those who supply body parts appear willing to grant property rights to scientists, universities, and others who use those body parts to conduct research and create products. (shrink)

This article draws on key models of monitoring and blockholding articulated in the incomplete contracts theory of the firm. Under incomplete contracts theory, different governance systems have incentive structures that entail different tradeoffs—tradeoffs between ownership concentration and liquidity, between monitoring and management initiative, and between private rent-seeking and activity benefiting shareholders as a group. The tradeoffs delimit opportunities for productive cross-reference. More specifically, blockholder systems, such as those in Europe, subsidize monitoring by permitting blockholders to reap private benefits of control (...) through self-dealing and insider trading. Market systems, such as those in the United States and Britain, regulate such private rent-seeking toward the end of maintaining an institutional framework that supports diffuse share ownership and liquid trading markets. It follows that a legal framework conducive to blockholding may be ill-equipped to foster dispersed equity ownership and thick trading markets and that a legal framework conducive to liquid trading markets may have properties that discourage blockholding. This gives rise to questions for law reform agendas on both sides of the Atlantic. In the United States, proponents ask for deregulation of controls on institutional investors, looking to encourage blockholding and more effective monitoring. In Europe, proponents ask for stronger securities regulation, looking to encourage deeper trading markets. This article suggests that each reform program may lead to disappointing results because neither assures conforming adjustments to the pertinent actors’ incentives. Alternatively, strict reforms that materially change prevailing incentive patterns could perversely destabilize workable arrangements without assuring the appearance of more effective alternatives. (shrink)

The economic theory of contract is being reshaped in ways which resonate with the findings of socio-legal contract scholars and of industrial economists and sociologists in the Marshallian tradition, who emphasise the 'embeddedness' of organizations within their social and cultural environment. Contractual co-operation is seen as depending on institutional factors which serve to enhance 'trust', and arrangements which in the past were criticized as the product of collusion are being reassessed as potentially efficient responses to market failure. (...) An active debate has begun on how instruments of public policy can best be deployed to arrive at an effective balance between co-operation and competition. This affects both the competitiveness of private sector organizations and the success of deregulatory reforms in the public sphere. These issues are explored within four main areas: developments in private-sector contracting; contract and organization in the public sector; the economics of contract law; and competitiveness and competition policy. (shrink)

The article examines how the rules on formation of contract and on mistake, contained in the various transnational model rules that have been published over the past two decades, have taken shape. The approach adopted here is based on an analysis of the ‘textual stratification’ of European private law. The relevant instruments (Convention on Contracts for the International Sale of Goods, Principles of European Contract Law, UNIDROIT Principles of International Commercial Contracts, Draft Common Frame of Reference, Principes contractuels (...) communs) are analysed and compared in their historical sequence. To what extent and why have the texts been transformed in the process? The article demonstrates that there is a very considerable common ground reflecting the state of the art of comparative research in these fields over the past hundred years. It also highlights issues on which consensus must still be reached and it suggests patterns towards reaching such consensus. It is argued that the Principles of European Contract Law, rather than the Draft Common Frame of Reference, should provide the point of departure for future discussions. The scene for the article is set by a critical examination of the concepts of contract and legal act, as used in the Draft Common Frame of Reference. (shrink)

This book examines the most controversial issues concerning the use of pre-drafted clauses in fine print, which are usually included in consumer contracts and presented to consumers on a take-it-or-leave-it basis. By applying a multi-disciplinary approach that combines consumer's psychology and seller's drafting power in the logic of efficiency and good faith, the book provides a fresh and unconventional analysis of the existing literature, both theoretical and empirical. Moving from the unconscionability doctrine, it criticizes (and in some cases refutes) its (...) main conclusions based on criteria which are usually invoked to sustain the need for public intervention to protect consumers, and specifically related to Law (contract complexity), Psychology (consumer lack of sophistication criterion) and Economics (market structure criterion). It also analyzes the effects of different regulations, such as banning vexatious clauses or mandating disclosure clauses, showing that none of them protect consumers, but in fact prove to be harmful when consumers are more vulnerable, that is whenever sellers can exploit some degree of market power. In closing, the book combines these disparate aspects, arguing that the solution (if any) to the problem of consumer exploitation and market inefficiency associated with the use of contracts of adhesion in these contexts cannot be found in removing or prohibiting hidden clauses, but instead has to take into account the effects of these clauses on the contract as a whole. (shrink)

: Ulysses contracts have faced paternalism objections since they first were proposed. Since the contracts are designed to override a present request from a legally competent patient in favor of a past request made by that patient, enforcement of these contracts was argued to be unjustifiable strong paternalism. Recent legal developments and new theories of practical reasoning suggest that the discussion of Ulysses contracts should be revived. This paper argues that with a proper understanding of the future-directed planning embodied (...) in Ulysses contracts, the charge of strong paternalism can be answered, and the enforcement of some Ulysses contracts may be justified under the rubric of weak paternalism. (shrink)

This chapter contains sections titled: Introduction The Challenge to the Distinctiveness and the Coherence of Contract Four Autonomy‐Based Theories Three Teleological Theories Concluding Remarks References.

This article aims to effectuate a paradigm shift in the way we view cases involving pure advantage-taking in contract formation. By ‘pure advantage-taking’ it is meant that D in some sense took ‘unfair advantage of’ a special bargaining weakness or vulnerability that D found ‘ready-made’ in P: D neither caused P’s relevant weakness or vulnerability nor otherwise was legally responsible for relieving it.Certain undue influence and unconscionable dealing cases (for example) fit this scenario perfectly, yet senior Commonwealth courts consistently (...) assert (or imply) that the doctrines of undue influence and unconscionable dealing are ordered, ostensibly exclusively, by a common law precept against interpersonal exploitation, and that judges are, when they invoke those doctrines, responding precisely to that particular concern. It is argued here, however, that the exploitation concept serves, or ought to be seen as serving, no necessary justificatory function in relation to state-assisted rescission or suppression of contracts objectively formed at common law. Instead, a principle of (what I shall call) ‘transactional neglect’ should be seen to eclipse and subsume the exploitation concept as the prevailing justification for interference with apparent contracts in pure ‘unfair advantage’ situations. The advocated shift is thus away from ‘exploitation’ towards ‘transactional neglect’—D’s corrective liability for failure to take reasonable precautions against the risk of foreseeable transactional harm to P, when P and D were, knowingly to D at the time, bargaining under conditions that make ‘exploitation’ possible. (shrink)

Ulysses contracts are a method by which one person binds himself by agreeing to be bound by others. In medicine such contracts have primarily been discussed as ways of treating people with episodic mental illnesses, where the features of the illness are such that they now judge that they will refuse treatment at the time it is needed. Enforcing Ulysses contracts in these circumstances would require medical professionals to override the express refusal of the patient at the time treatment is (...) required, something that is generally problematic both ethically and legally. In this paper I will argue that despite appearances Ulysses contracts can make it the case that treating a patient in such circumstances is an instance of treating him with his consent, although safeguards are needed to ensure that this is the case. Given the potential benefits to patients I further argue that modified Ulysses contracts should be made legally enforceable. (shrink)