Default Rule Theory and International Arbitration Law (with Comments on Expanded Review and Ex Parte Interim Relief)
Article from: TDM 5 (2005), in International Commercial Arbitration
Professor Ian Ayres identifies the "default revolution" as one of the "important normative results" of modern economic analysis of contract law. By the "default revolution," Ayres means the widespread appreciation of the dichotomy between mandatory rules and default rules. A mandatory rule, of course, is a rule that the parties cannot contract around. By contrast, a default rule is a rule that the parties can contract around; it governs their contract, but only if the parties do not agree otherwise.  According to Ayres, it has "become almost impossible to write a contract ...