For this consequence of the current criticism of “self-condescens SCs”, we will delve deeper into the economic theory on so-called optimal contracts, incomplete contracts and/or implicit contracts. A: In the United States, when we work in environmental justice litigation in the southeastern United States and, for example, you have a poor community of colors that pollutes a hundred fortune companies that disproportionately pollutes that neighborhood nearby, and they work a good neighborhood agreement in principle through some sort ad hoc negotiation. Neighbours are never convinced that this company will actually make the emission reductions they have promised for several years or that they will achieve by investing the community reduction or compensation benefits they have promised. The fact that there is a written agreement that all lawyers have had, that it is the United States, that officials sat around the table without refuting, inevitably raises concerns about the implementation of these informally negotiated agreements. So what we`ve learned is to build what are called “almost self-forced agreements.” I would say that it would be as dear to my concern in a brown field of mediation in a city in the northeastern United States as it is in Manila, if we go to Mendenov and worry about their global mining interests and we do not promise the Muslim minority on that island. Is there some kind of “self-forced intelligent contract” — the answer is … Maybe. But if you think that these crude values of “information asymmetry” and unequal bargaining power are unfair – and in any case, they should not be “unbreakable,” autonomous or “self-forced,” you should probably believe in the power of good O… The contract. Parties are not allowed to consider these concepts as essential or the parties wish to offer themselves a margin of interpretation, law and/or negotiation at a later date.
By leaving some notions ambiguous, the parties can also send signals to a third party who may be asked to resolve a future dispute. Let us take stock of the many concepts that go into this myth of “self-imposed” treaties. As soon as there is a commitment, if there is a neutral process that facilitates negotiation, the fact that there are loopholes in the regulatory system, the fact that there are political inequalities, I have never seen that, which makes it impossible to negotiate anything. Keep in mind that we are trying to produce something better for both parties than any agreement. They should want this agreement implemented because the alternative is not so attractive to both sides, that is what it is all about. All contracts are incomplete. However, incomplete contracts differ in several key dimensions. Many contracts are incomplete because the parties refuse to condition the performance of future states that they cannot meet or verify in court. In these cases, incompleteness is exogenous for the contract. However, other agreements appear to be “deliberately” incomplete, as the parties do not condition the performance of the available and verifiable measures that could be fixed in the contract at a relatively low cost.