In economics, the field of contract theory can be divided into the theory of complete contracts and the theory of incomplete contracts.  The complete theory of the contract is also called the theory of the agency (or the theory of the principal agent) and is closely related to the theory of the design and implementation of mechanisms (Bayes). The two main classes of models in comprehensive contracting theory are adverse models of selection and moral hazard. In this part of the theory of contracts, any possible contractual agreement between the contracting parties is permitted, to the extent that this is possible in view of the relevant technological and information technology constraints. For asymmetric information, optimization issues can be addressed under the disclosure principle. Laffont and Martimort (2002) are a first exhibition of textbooks on the complete theory of contracts.  Contracts may be oral (spoken), written or a combination of both. Some types of contracts, such as. B the purchase or sale of real estate or financing contracts must be in writing. If the parties to an agreement could define their respective rights and obligations for any future state in the world, their contract would be complete. There would be no loopholes in the terms of the contract.
Oral agreements are based on the good faith of all parties and can be difficult to prove. A comprehensive treatise is an important concept in contract theory. There are sometimes challenges in knowing whether competition bans are legally binding. There is no simple answer; it varies from case to case. Determine in advance the validity dates of the agreement and seek legal advice, as employers can only establish non-compete agreements within a realistic timeframe and cannot permanently prevent former employees from pursuing their careers in this field. Employers may also seek non-compete agreements to protect against former employees who disclose secrets or sensitive information about operations, customers, customers, formulas, pricing, strategy, salary, methods and practices, ideas, future products, or public relations and marketing plans. Non-competition clauses are generally considered legally binding as long as they are subject to appropriate restrictions, for example.B. clear and realistic areas where staff may or may not work, or a specific period of time before a staff member can return to work in the field. . . .