Default rules: Theoretical foundations

This chapter critically reviews the contributions of several theoretical perspectives to the understanding and design of default rules in contract law - including autonomy-based theories, economic analysis, and social conceptions of contract law. The analysis highlights the descriptive and normative implications of the observation that there is neither a clear demarcation line between contract interpretation and supplementation through default rules, nor between default and mandatory rules. The chapter also considers the implications of behavioral insights for the theoretical perspectives. Finally, the chapter notes the key challenges that face the theoretical analysis of default rules.