The parties to a contract usually try to minimize the risks of costly opportunistic behavior by putting appropriate provisions in it.

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Parties to a contract typically include provisions to minimize the risk of costly opportunistic behavior, such as by specifying the terms and conditions of the agreement, outlining remedies for breach, and setting expectations and standards for performance. This helps to ensure that both parties are committed to fulfilling their obligations and reduces the likelihood of disputes or costly litigation.

The Parties to a Contract Usually Try to Minimize the Risks