Contractual Rigidity

Definition

The resistance of contracts to adaptation when circumstances change. Rigidity is often a design feature (protecting commitment) but becomes a failure when it prevents necessary adjustment.

Example

A PPP specifies technology from 2005. By 2020, superior technology exists, but the contract requires the obsolete approach. Rigidity that protected commitment now prevents improvement.

Source

WCF Section 2

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Structural Incompleteness

Renegotiation Dynamics

Opportunistic Behavior Window

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Contract Failure Mode

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Why Contracts Fail