Introduction

Professor Ian Ayres identifies the "default revolution" as one of the "important normative results" of modern economic analysis of contract law.[1] 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. [2] According to Ayres, it has "become almost impossible to write a contract ...