tehingul

Tehingul is a term used in economic and legal theory to describe a contract design and negotiation framework that centers the process and terms of a transaction as the primary driver of governance. It emphasizes negotiated flexibility, performance-based terms, and adaptive clauses, rather than rigid, price-first arrangements.

Etymology and origin: The term is a neologism that has appeared in scholarly discussions in the 2010s and 2020s. It draws from the root tehing, meaning transaction in several languages, with the suffix -ul to indicate mode or manner. The label signals a shift toward process-oriented arrangements that govern how a deal evolves over time.

Core principles: Tehingul contracts typically specify measurable outcomes, transparent information sharing, staged or conditional commitments, and triggers for renegotiation or sunset clauses when conditions change. They aim to reduce information asymmetry and align incentives among parties such as buyers and sellers, lenders and borrowers, or regulators and firms, by embedding adaptability within the contract framework.

Applications: In procurement, tehingul designs may use milestones and flexible quantities tied to performance. In project finance, they enable renegotiation when external circumstances shift. In international trade, they support dynamic risk sharing through contingent clauses and adaptive pricing mechanisms.

Criticisms and challenges: Critics argue that tehingul can introduce legal complexity and uncertainty if performance metrics are poorly defined. Implementing adaptive clauses requires robust governance, monitoring, and dispute resolution. There is also concern that excessive flexibility may undermine price discipline or lead to strategic renegotiation.

See also: Contracts, contract theory, transaction cost economics, adaptive governance.