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Contracts induced by means of bribery: Should they be void or valid?

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  • Nell, Mathias
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    Abstract

    This paper argues that contracts induced by means of bribery should be valid. Nullity and voidability decrease the incentive for voluntary disclosure, assist corrupt actors with enforcing their bribe agreements and provide leeway for abuse. Thus, they run counter to effective anti-corruption. It is argued that other instruments are more suitable for preventing corruption. --

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    File URL: http://econstor.eu/bitstream/10419/55010/1/684331985.pdf
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    Bibliographic Info

    Paper provided by University of Passau, Faculty of Business and Economics in its series Passauer Diskussionspapiere, Volkswirtschaftliche Reihe with number V-53-07.

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    Date of creation: 2007
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    Handle: RePEc:zbw:upadvr:v5307

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    Postal: 94030 Passau
    Phone: ++49 (0)851 509 0
    Fax: ++49 (0)851 509 1005
    Web page: http://www.wiwi.uni-passau.de/index.php?L=2
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    Related research

    Keywords: Bribery; Contracts; Corruption; Due Diligence; Enforcement; Impugnment; Liability; Leniency; Nullity; Private Law Validity; Voidability; Voluntary Disclosure (Program);

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    1. Stremitzer, Alexander, 2008. "Opportunistic Termination," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 226, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    2. Frédéric Boehm & Juanita Olaya, 2006. "Corruption In Public Contracting Auctions: The Role Of Transparency In Bidding Processes," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(4), pages 431-452, December.
    3. Lambsdorff, Johann Graf, 2002. "Making corrupt deals: contracting in the shadow of the law," Journal of Economic Behavior & Organization, Elsevier, vol. 48(3), pages 221-241, July.
    4. Kingston, Christopher, 2007. "Parochial corruption," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 73-87, May.
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