ABSTRACT. Schwartz and Scott propose a normative theory that fits business contracts, the subsidiary category of contractual relationships that the law most affects. Trebilcock and Leng assert that the requirements of formal institutional quality become more demanding as economies move up the development curve. Hatzis argues that on many occasions the parties consider that a modification of the initial terms of their contract will be mutually beneficial or at least will be a better alternative than one ensuing from juridical intervention. Katz argues that legal and economic institutions will have to change substantially in response to new technologies of trade.