Contract formation as a function of conflict of interest and available alternatives was investigated in a framework similar to that employed by Thibaut (1968). Some problems with the earlier design were noted, particularly as to task understanding and saliency for subjects, and an alternative explanation was presented for some of the results. A modified design was used to test the prediction that contract formation wouldnotdiffer across conditions with varying degrees of conflict or attractiveness of alternatives in a situation where both persons were made aware of the actually equal power distribution. The design made use of a stooge to ensure this awareness. Subjects were undergraduate males enrolled in psychology classes. As was predicted, no significant differences in the number of contracts formed or in the number of dyads forming contracts were found between conditions.