Resilience of Incomplete Contracts

Resilience of incomplete contracts refers to their ability to adapt and remain effective even when unforeseen circumstances or changes occur after they are signed. Since these contracts cannot cover every possible future event, their resilience depends on how well they are structured to handle unexpected issues—like including flexible terms or decision-making processes. This adaptability ensures that parties can continue working together and resolve disputes efficiently, maintaining trust and stability despite uncertainties. Essentially, resilient incomplete contracts are designed with some degree of flexibility to withstand the unpredictability of real-world situations.