Contract Management wins Nobel Prize

  • Contract Management wins Nobel Prize

    Contract Management wins Nobel Prize

    CMD Founder Paul Carter Hemlin was delighted to hear the announcement of this year’s Nobel Prize for Economics being awarded to Professors Oliver Hart and Bengt Holmstrom for their work on contracts.
    The press release stated: “Modern economies are held together by innumerable contracts….. As such relationships typically entail conflicts of interest, contracts must be properly designed to ensure that the parties take mutually beneficial decisions.”   “Contracts are incomplete instruction manuals. They cannot specify what should be done in every case. Instead, they must stipulate how decisions should be made.”  Paul has been a leading advocate of this view for a long time and was quoted recently in saying “…that contracts are key business assets and do not just exist for some ceremonial purpose at the time of making the agreement.”
    The award of the Nobel Prize will certainly have a positive impact on Contract Management for the coming years.