CONSIDER THE CONTENT AND BASICS OF SELF-ENFORCING AGREEMENTS IN CONTRACT LAW

Document Type : Research Paper

Author

Assistant Professor of Private Law, Hazrat-e-Masoumeh University, Iran

Abstract

Traditionally, the state has been regarded as the sole actor guaranteeing contract performance. Self-enforcing agreements are based on private order which assures contractual performance by extra-legal governance and ex-ante mechanisms. This article considers the meaning of self-enforcing agreements and outlines the basics. The reasoning behind self-enforcing agreements is found on legal functionalism and psychological approach of contract law. This viewpoint emphasizes on the opportunism of parties and seeks to assure contracts imposing on cost exit and relational governance. The findings of this study confirm the benefits of non-governmental performance, which improves the legal decentralism. These agreements are not well known in Iran and this topic is still a relatively unstudied area. As a result, it is safe to say the lack of requirements of self-enforcing agreements to constitute them as complementary and not substitute.   

Keywords

References

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Law Quarterly
Volume 49, Issue 3
October 2019
Pages 543-559

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