Under low-cost contracting like that between beekeepers and farmers, the agreement between the two parties is not self-enforcing because:
A)the terms of contract are laid down by a third party.
B)the initial distribution of rights between the two parties is unequal.
C)services and payments take place over a span of time, and either might choose to default on his obligations at some point.
D)the contract distributes gross revenue between the two parties unequally.

Question

Quizplus · Accepted Answer

In low-cost contracting between beekeepers and farmers, services and payments take place over a span of time, which creates uncertainties regarding the future delivery of goods, and either party might choose to default on their obligations at some point. Therefore, the agreement between the two parties is not self-enforcing.

Under Low-Cost Contracting Like That Between Beekeepers and Farmers, the Agreement