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Their distribution and IR teams are probably willing to make the “extra mile” to close a sale with a customer, but if that “additional mile” involves an “incidental” agreement to lend money to the customer to complete the deal, it`s time to reassess the transaction. The 50/50 distribution of the surplus is not essential to our outcome, but our results are based primarily on the idea that C at least some of the surplus in negotiations with J.Example 1: The good side of the Side Agreements PartiGuter State (p.5) Bad State (1-p .5) share gbgbS120200 20200J2000200C700100S-J140200140200SS-C-C2100150200 In order to gain some intuition, Let`s start with example 1, which aims to show the potential benefits of ancillary agreements. “They have all these different ways that this subsidiary convention and [later] agreements are used to cheat a lot of types of people,” Cohen said. Ancillary agreements would also have broader implications for contract law and theory, Cohen argued. Secondary restrictions change the entire contract paradigm that exists in contract theory, Cohen said, because ancillary agreements are a deliberate attempt to render the main contract incomplete. “There are many ways that contract theory can benefit from thinking about ancillary agreements and the idea of contract as property.” He concluded by saying, “Sometimes we have to look side by side to see what is right in front of us.” When evaluating ancillary agreements, the courts might consider whether the agreement had any other plausible purpose than to mislead one or more parties, Cohen suggested. Some scientists have argued that contracting parties could use an ancillary agreement to avoid design costs. Design costs “could explain some ancillary agreements [but] it doesn`t seem to explain much,” Cohen said. Courts and commentators sometimes suggest that standardized forms limit what can be included in contracts, but Cohen responded that, in some cases, standard forms are used to discourage ancillary agreements, and if not, forms often have room for written supplements. Secondary restrictions usually appear when the main agreement is used as a type of property, as collateral for a loan, Cohen said.