The Risks of Bounded Rationality in Contracts

Every contract you sign has a secret loophole, and it’s not your lawyer's fault.

It’s because we’re human. Our brains literally can't predict every possible problem,

so every agreement we make is incomplete. We just do our best and hope it’s "good enough."

This is called bounded rationality. But here’s the scary part. Someone else sees

that "good enough" deal and thinks, "Perfect, a gray area I can exploit."

This is opportunism. They’ll use that ambiguity to twist things for their own gain.

So every deal you make isn't just a bet on the plan; it's a bet on the person's character.