Department of Mathematics
Title : A matter of interpretation: Ambiguous contracts and liquidated damages
| Speaker: Simon Grant Affiliation: The University of Queensland Time: 4:00 pm Tuesday, 22 November, 2011 Location: Room 6115, Owen Glenn Building |
Abstract
| We focus on syntactic aspects of differential awareness that give rise to contractual disputes. Boundedly rational parties use a common language, but do not share a common understanding of the world, leading to ambiguity in both syntactic and semantic forms. In contractual relationships, ambiguity leads to disagreement and disputes. We show that the agents may prefer simpler less ambiguous contracts when facing potential disputes. In particular, parties may prefer liquidated damages provisions to contractual terms that specify a more complex risk allocation. |
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Programmes and Centres
- New Zealand Institute of Mathematics and its Applications (NZIMA)
- Community for Understanding and Learning in the Mathematical Sciences (CULMS)
- Centre for Mathematical Social Science (CMSS)
- Department of Computer Science
- Department of Engineering Science
- Department of Physics
- Department of Statistics
- Auckland Bioengineering Institute
