Contractualizing Procedure

Abstract:     
Modification and waiver of procedural rules are commonplace between litigants during trial. Yet, contracting parties may also want to modify the rules of procedure before the dispute arises. This paper analyzes the motivations behind pre-dispute procedural arrangements, which we call contractualized procedures, and their implications over the enforcement of such procedures and the design of default procedural rules. It explains the advantages that contractualized procedures offer over post-dispute modifications, and explores how the early timing of procedural modifications affects litigation externalities.

Number of Pages in PDF File: 58

Keywords: Contract, Procedure, Default Rules

JEL Classification: K12, K40

working papers series