# kaal:claim:3782210-004

**Claim.** Strict legal enforcement becomes impossible once a market is sufficiently complex and dynamic, because law cannot keep pace with the creative contracts that leading experts continually invent.

**Type.** failure  **Support.** argued

**Holds when.**

- complex and rapidly evolving markets
- markets where experts continually improve business arrangements

**Source quote.**

> Strict legal enforcement is not pos- sible when the market becomes sufficiently complex and dynamic—laws cannot keep up with the creative contracts that arise when leading experts are continually improv- ing business arrangements.

**From.** Craig Calcaterra, Wulf A. Kaal, *The Importance of Reputation for the Evolution of Decentralization* (2021), Chapter. Reputation, page 2

**Cite as.** Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782210

**Verify.** sha256 of source PDF `9cc531ab239f6266c8aeddcc8e54f4c06029c44e825444bee137bbcc0c9d0a8e` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20The%20Importance%20of%20Reputation%20for%20the%20Evolution%20of%20Decentralization.pdf

**Failure mode.** Regulatory pacing failure  (family: regulatory-lag)

**Topics.** law-and-legal-systems, compliance, dynamic-regulation, innovation

**Keywords.** legal-enforcement, regulatory-lag, complexity, contract-innovation

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