The paper explores how contracts can be renegotiated between an agent and a principal to achieve the best outcome when the agent invests in an asset more valuable to the principal. The researchers found that when contracts can be renegotiated, the agent's investment can actually improve their bargaining power. Option contracts can lead to the best outcome if this effect is stronger than the risk of holdup by the principal. However, achieving the best outcome can be challenging in some cases. If parties have a reliable signal, the best outcome can still be reached through certain bargaining procedures. But if the signal is unreliable, the optimal contract may include terms that courts may not enforce.