Jamal Awil

← Opting out of the Legal System

Larger transactions shift the balance between contract benefits and litigation costs. [causal]

Although, as the size of the transaction increases, the benefit of a legally enforceable contract increases relative to the transaction costs of litigation, the amount of capital that is tied up is greater, which in turn increases the opportunity cost of doing without the capital during the pendency of the litigation.

Lisa Bernestein, Opting out of the Legal Sys…, loc. 214