Search results
Results from the WOW.Com Content Network
Thus the contract curve, the set of points Octavio and Abby could end up at, is the section of the Pareto efficient locus that is in the interior of the lens formed by the initial allocations. The analysis cannot say which particular point along the contract curve they will end up at — this depends on the two people's bargaining skills.
However, based on the extent of society’s preferences for an equal distribution of real income, a point off the curve may be preferred. All points on or below the utility–possibility frontier are attainable by society; all points above it are not attainable. The utility–possibility frontier is derived from the contract curve. [1]
Fig. 9 shows Octavio's offer curve as dark blue and Abby's as brown. They meet at the point ω ' and the equilibrium budget line (drawn in grey) is the one passing through this point. The indifference curves through ω ' for the two consumers are shown in paler colours. An offer curve necessarily passes through the endowment point ω.
The production-possibility frontier can be constructed from the contract curve in an Edgeworth production box diagram of factor intensity. [12] The example used above (which demonstrates increasing opportunity costs, with a curve concave to the origin) is the most common form of PPF. [13]
Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell.
The Indian Contract Act, 1872 [1] prescribes the law relating to contracts in India and is the key regulating Indian contract law. Then the principles of English Common Law. It is applicable to all the states of India. It determines the circumstances in which promises made by the parties to a contract shall be legally binding.
The contract curve is the locus of Pareto efficient equilibria, running from southwest to northeast in the Edgeworth Box. — Preceding unsigned comment added by Zhuitink (talk • contribs) 01:53, 1 February 2011 (UTC) As a non-economist I was unable to read the figures without outside help.
A term is a condition (rather than an intermediate or innominate term, or a warranty), in any of the following five situations: (1) statute explicitly classifies the term in this way; (2) there is a binding judicial decision supporting this classification of a particular term as a "condition"; (3) a term is described in the contract as a ...