The purpose of this article is to analyse the use of proactive law in contracts illustrated by the use of a particular type of contract within the IT industry, the so-called iterative contract. This type of contract has its root in a special software development process called iterative and incremental software development. In contrast to traditional IT project methodologies, where the product development takes place in a sequential design process, the iterative process is characterized by the so_ ware being developed through a series of repeated cycles in smaller portions at a time. This software development process has driven the need for a new contract design that supports the product life cycle better than the traditional contracts. As will be shown in the analysis, the iterative contracts represent important legal innovation and can be categorized as a proactive law instrument that has the potential to create more business success. However, empirical research still needs to be done in order to confirm that these types of contracts are better at securing business success than traditional contract forms.
Proactive Law in a Business Environment, 2012, p. 235-250