Obtaining Relational Rents in K03 Standard Contract through the Exercise of Strategic Contracting with Focus on Subsequent Changing Circumstances

Marie-Louise Reinholt Ipsen

Student thesis: Master thesis

Abstract

The aim of the Master Thesis is to investigate how relational rent can be generated based on the K03 standard contract. The focus of the Master Thesis concerns how the impact of subsequent changing circumstances affects the parties’ possibility to generate relational rent.
Initially, the potential of using strategic contracting in relation to K03 standard contract is analyzed. This analysis is based on Dyer and Singh’s theory of relational rent. Dyer and Singh set up four cumulative conditions that must be satisfied to obtain relational rent. Based on these conditions this part of the Master Thesis examines if the current K03 standard contract makes it possible for the Costumer and Supplier to obtain relational rent or if the K03 contract needs to be complemented by further provisions.
The second part of the Master Thesis introduces subsequent changing circumstances. Given the length and complexity of the K03 standard contract it is more likely that such circumstances will appear during the term of the agreement. In this part it is also investigated how the K03 standard contract deals with subsequent changing circumstances.
The third part of the Master Thesis examines the parties’ legal position in appearance of subsequent changing circumstances.
In the fourth part, the Master Thesis introduces and examines proactive provisions, such as hardship provision and gain provision based on lex mercatoria in order to analyse if it would be an advantage to include them in the K03 standard contract.
Based on the conclusions from first, second, third and fourth part the Master Thesis finally sets up provisions which advantageously can be included in the K03 standard contract in order to ensure fulfillment of the conditions defined by Dyer and Singh notwithstanding occurrence of subsequent changing circumstances.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2020
Number of pages91
SupervisorsKim Østergaard & Henrik Lando