Which of the following is not among the functions of contract?
A) to provide incentives for efficient reliance
B) to reduce transaction costs
C) to discourage the development of asymmetric information
D) to provide risk allocation mechanisms

Question

Quizplus · Accepted Answer

Contracts do not aim to discourage the development of asymmetric information, but rather establish ways to deal with it in order to ensure trust and cooperation between the parties involved. The other options (A, B, and D) are common functions of contracts.

Which of the Following Is Not Among the Functions of Contract