The ex post transaction costs arise because contracts are incomplete, incompletely self-enforcing and incapable of dealing with all possible aspects of human action and contingencies .these costs include the costs of a dispute resolution and the establishment and operation of governance procedures; b. Dealing with the maladaptation of the actual provisions of the contract , including its renegotiation ;c. Monitoring the contract and ; d. Bonding the contractual parties to continue to work together . Even more importantly , the ex post transaction costs include efficiency losses arising from distortions induced by the term of contract , i.e. Moral hazard