Economics and Law of Contracts

Code:

2ECON13

Acronym:

EDC

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2015/2016 - 2S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Master in Economics

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
ME	12	Bologna Syllabus	1	-	7,5	56	202,5

Teaching language

Portuguese

Objectives

This course intends to analyze, from the economic and from the legal point of view,  the contract. It is therefore intended to discuss the formation of contractual relations. In particular, the construction, validity, effects and transmission of contracts. Emphasis is given to problems that frequently arise in environments where there are information asymmetries between the contracting parties, which apply (for example) to regulation economics, financial economics, labor economics and health economics.

Learning outcomes and competences

Knowledge of the economic and legal issues related to the realization of contracts.

Working method

Presencial

Pre-requirements (prior knowledge) and co-requirements (common knowledge)

Basic knowledge of microeconomics.

Program

1. Introduction to the Law of Contracts
1.1. Definition and scope
1.2. Formation of contracts: special reference to the pre-contractual phase
1.3. Elements of the Contract: agreement; cause or motive.
1.4. Validity
1.5. Effects
1.6. Transmission, Modification and Extinction: the special case of unfulfilment
1.7. The Duty of Information: its importance to the formation and execution of the contract

2. Introduction to the Economics of Contracts
2.1. Contracts with complete information
2.2. Contracts under uncertainty
2.3. Principal-Agent model
2.4. Contracts with asymmetric information
2.4.1. Moral hazard
2.4.2. Adverse selection
2.4.3. Signalling

Mandatory literature

Macho-Stadler, Inês. and J. David Pérez-Castrillo ; An introduction to the economics of information: incentives and contracts, Oxford University Press , 2001
Engrácia Antunes, José A.; Direito dos Contratos Comerciais, Almedina, 2009

Complementary Bibliography

Tirole, Jean ; The theory of industrial organization, MIT Press, 1989
Rasmusen, Eric ; Games and information: An introduction to game theory, Blackwell, 2002
Galvão Telles, Inocêncio ; Manual dos Contratos em Geral, Coimbra Editora, 2010

Teaching methods and learning activities

The course consists of a set of lectures.

There are two modules: (1) Law of Contracts (1/3 of the classes); and (2) Economics of Contracts (2/3 of the classes).

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Exame	60,00
Prova oral	10,00
Trabalho escrito	30,00
Total:	100,00

Eligibility for exams

Calculation formula of final grade

Distributed evaluation 
(10%) Resolution of a practical case (Law)
(10%) Best grade on the resolution of two practical cases (Economics)
(10%) Writen report and oral presentation
(60%) Exam

Examinations or Special Assignments

Internship work/project

Special assessment (TE, DA, ...)

Classification improvement

Observations