The normative framework must also deal explicitly with the issue of contractual
hold-up. The obligations of parties involved in formal agreements on commercial
transactions have to be enforceable, and legislation to that end should be in place.
Most importantly, enforcement has to be operationally and financially feasible. If the
judicial system is such that the cost of litigation becomes greater than its potential
benefit, no legislation protecting the rights of contractual partners can be effectively
enforced.