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All at the same time, in a way that shows total agreement These findings are at odds with our previous conclusions. If the parties to an agreement could define their respective rights and obligations for any possible future state of the world, their contract would be complete. There would be no loopholes in the terms of the contract. We all agree that Mr. Ross should resign. In accordance with a fact, a rule or a principle, if people agree, they all agree on what to do in economics, the field of contract theory can be divided into the theory of complete treaties and the theory of incomplete contracts. [1] The complete theory of the contract is also called agency theory (or principle agent theory) and is closely related to the theory of the design and implementation mechanism (Bayesschen). The two main classes of models in the whole of contract theory are an unfavorable choice and models of moral hazard. In this part of contract theory, any contractual agreement between the contracting parties is allowed, provided it is possible within the corresponding technological and IT constraints. In the presence of asymmetrical information, optimization problems can be resolved because of the principle of disclosure.

Laffont and Martimort (2002). [2] Formally in accordance with what has been said or approved however, because it would be prohibitive to write a full contract, real-world contracts are generally incomplete. If a dispute arises and the matter falls into a gap in the contract, either the parties must negotiate or the courts must intervene and fill the void. The idea of a full contract is closely linked to the concept of delay rules, for example.B legal provisions that fill the gap in a treaty in the absence of an agreed provision. A complete contract is an important concept of contract theory. On the other hand, incomplete contractual models take into account situations in which only a limited category of contracts is allowed, for example. B, in the company`s Grossman-Hart-Moore theory, only simple ownership structures can be contractually stipulated. [3] The Council agrees with government policy.