Courts' abilities to enforce contracts may create incentives for two parties to uphold an agreement when they otherwise would have preferred to defect. By doing so, courts prevent the contracting parties from facing a/an ________.

Question

Quizplus · Accepted Answer

The reference to "defection" and the mention of parties upholding an agreement suggests that this is a prisoner's dilemma. The courts' ability to enforce contracts means that the parties are less likely to defect and have to face legal consequences.

Courts' Abilities to Enforce Contracts May Create Incentives for Two