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According to the Theorem of Coase, a contract can be efficient or optimal: 1) If the economic activity the contract generates is efficient. 2) If

According to the Theorem of Coase, a contract can be efficient or optimal:

1) If the economic activity the contract generates is efficient.

2) If the promises in the contract are not performed.

3) If transaction costs are high.

4) If the exchange between the parties to the contract is fair.

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