Question: 1. Suppose that person A, while aiming a gun at person B, invites B to write a check. Explain the efficiency argument for allowing B to cancel the check later.
2. Suppose that a baseball star signs a five-year contract for $1 million per year. In the third year of the contract, the player hits more home runs than anyone else in the league. Now he demands to renegotiate his salary. Does efficiency require the law to enforce the original contract or set it aside?