ABSTRACT
This chapter begins with a brief characterization of what is meant by a “relational standpoint.” R. Macneil’s first major contribution to contract theory was the distinction between discrete and relational contracts. These contracts represent two ends of a continuum. The difference between discrete and relational contracts can be characterized in a number of ways. Discrete contracts are of short duration, have generally only two parties, are limited to simple, monetizable economic exchange and have a very limited degree of personal involvement so that performance is usually transferable to others by both parties. The chapter introduces the nature of economic exchange, the role of the lawyer in contract planning and the basic distinctions. The consideration materials go on to encompass one of employee handbook cases, in which the court nicely finesses the consideration issue and holds terms of the handbook binding on the employer despite the clear lack of the traditional “bargained for” element.
