Hart (1995) concludes that as a result of these three contracting costs, the parties will write a contract that is incomplete. That is, the contract will contain gaps and missing provisions.
The Economic Implications of Contractual Incompleteness. Hart (1995) notes that as observed, an incomplete contract will be revised, and/or renegotiated as the future unfolds. In fact, given that the contractual parties can fill in the gaps as they go along, one may ask why contractual incompleteness matters. The reason is that the renegotiation process imposes several