all together at the same time, in a way that shows a complete agreement, but since it would be extremely expensive to draft a full contract, contracts in the real world are usually 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 complete contract is closely linked to the concept of default rules, e.B. with legal rules that fill the gap in a contract if there is no agreed provision. In economics, the field of contract theory can be divided into the theory of complete contracts and the theory of incomplete contracts. [1] The complete theory of contractualization is also known as agency theory (or principal-agent theory) and is closely related to the design of the mechanism (Bayesian) and the theory of implementation. The two most important classes of models in the complete theory of contractualization are the models of adverse selection and moral hazard. In this part of the contract theory, any conceivable contractual agreement between the contracting parties is permitted, provided that this is possible in view of the relevant technological and computer limitations. In the case of asymmetric information, optimization problems can be addressed on the basis of the disclosure principle. Laffont and Martimort (2002) are one of the leading textbooks of complete contract theory. [2] Formally conforming to what is said or approved A complete contract is an important concept in contract theory. Informally in agreement or able to cooperate easily If the parties to an agreement could determine their respective rights and obligations for any possible future state of the world, their contract would be complete. There would be no gaps in the terms of the contract.

whether or not to a fact, rule or principle, when people agree, they all agree on what to do. On the other hand, incomplete contract models take into account situations where only a limited category of contracts is allowed, e.B. in the grossman-Hart-Moore theory of the company, only simple ownership structures can be established contractually. [3] We have listed all the clues in our database that match your search. There will also be a list of synonyms for your answer. Depending on the number of characters, synonyms have been arranged in such a way that they are easy to find. show that someone likes or approves of someone or something when people or things are in sync, they agree or move at the same pace If your word has anagrams, they are also listed with a definition of the word if we have one. .