Beautiful sunsets
How a legal instrument can help us avoid becoming stuck in a tired status quo
Contract law is perhaps not a domain that immediately comes to mind when thinking about behaviour and behaviour change. Nonetheless, there is a concept, quite common in certain types of contracts, that recognizes and deals with the all too human tendency, status quo bias, the tendency to opt for keeping things the way they are. What is this legalistic concept, and how could it be useful as a behavioural instrument in other situations than contractual arrangements?
A sunset clause or sunset provision is inserted in a contract to explicitly state which aspects will cease to be effective after a specified date, unless action is taken to renegotiate it. In its simplest incarnation, the clause is implicit: by definition, a fixed-term contract lapses when the specified term comes to an end. But sometimes, establishing a fixed term upfront is not appropriate, or perhaps the contract covers multiple aspects of a relationship, containing certain conditions or obligations that may need reviewing or revising from time to time, while others remain unchanged. Of course, a fixed-term contract can be extended if both parties agree, but sunset clauses offer more flexibility, while serving two purposes. They simultaneously avoid the indefinite continuation of a contract that…
