Bargaining and Contracting

Abstract

Disputes between two parties are often solved by discussions which lead to a mutually acceptable bargain. In the process of reaching this reciprocal agreement some compromise is frequently required from each party. The bargain reached can be formalised as a written contract. For example, a 12-year-old boy caused his parents concern because he frequently stayed out late. The boy felt that his parents were unreasonable in asking him to come home too early and in their refusal to allow him to attend evening cinema at the weekends. Following discussion with both parties an agreement was reached whereby he was allowed to stay out until 9.30 p.m., provided his parents knew where he would be after 8.00 p.m. If he kept these times, it was agreed that he should be allowed to go to evening cinema at the weekends. If he failed to keep his bargain one evening, then he was to remain at home the following evening and would lose the weekend cinema privilege. This agreement was written out and signed as a contract by both the parents and the child.