• Design contracts that create optimal incentives and risk allocations
• Design a strategy for close contractual cooperation with certain customers or suppliers
• Use the flow of information generated digitally through contracts to manage contracts both relationally and formally

Contracts establish the framework for value-creating and innovative business cooperation. They establish incentives, allocate risk, and create processes for re-negotiation and information exchange. To design optimal contracts, and to carry them out productively through modern contract management techniques, requires an understanding of both classical and behavioral contract theory where the latter includes psychological factors such as reciprocity, trust, and identity. The course includes both theories and illustrates their usefulness through real-world cases in which the students are asked to choose a contracting strategy or to design or negotiate a contract.

Professor Lisa Bernstein, who is world renown expert on how contracts are applied in reality, will co-teach theories and cases, drawing in part on her recent work on managerial outsourcing contracts.

Also, some learning objectives are inspired by the work of the World Commerce and Contracting organization (worldcc.com), enabling students to apply for its apprenticeship program in large international companies. 

The course includes several of the Nordic Nine principles:

#1

The course provides a deep understanding of business practices by deepening the student's understanding of classic and modern contract theory 

#2 

Ambiguity plays a significant role in many of the situations in which the students are asked to choose contract terms or strategy 

 #3

Sustainability can be achieved through contractual cooperation with suppliers which also involves ethical dimensions and loyalty

#4 

The course aims to enable the student to strengthen a firm's competitive edge. The exercise of loyalty and integrity can be part of this and will be discussed in relational contracting

#5 

See #4 

#6 

The course underlines the importance of the principle of value maximization, which demands creative problem-solving, critical thinking, and collaborative practices

#7 

Prosperity is the aim behind the value maximization principle which is central to the course. Sustainability involves the prosperity of future generations 

#8

Growth occurs through learning and relearning, and the mutual learning experience in group work

#9 

The course includes international contracts that create value both globally and locally

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International Studies of Management & Organization, 17(4), 31–57. 

Frydlinger, Hart and Vitasek: A new approach to 

contracts, Harvard Business Review, September/October, 2019.  

Lando, Henrik og Norden, Gunnar: Note om Coase-teoremet. Undervisningsnote.  

Lando, Henrik: How to allocate risk in a large construction project. Undervisningsnote. p 5-48.   

Lando, Henrik. Note om Charness-artikel. Undervisningsnote.

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R, Wohlgezogen et al. The two facets of coordination. Academy of Management Annals (2012) 6(1) 531-583.