Post by fireopal on Jan 14, 2010 10:19:59 GMT 4
On and Off Contract Remedies
Richard R. W. Brooks
Yale University - Law School
Alexander Stremitzer
Yale Law School; University of Bonn - Economics Department
December 16, 2009
Yale Law & Economics Research Paper No. 396
Abstract:
A party dissatisfied with the contractual performance of a counterparty is typically able to pursue a variety of legal recourses. Within this apparent variety lurk two fundamental alternatives. The aggrieved party may (i) “affirm” the contract and seek money damages or specific performance; or (ii) “disaffirm” the contract with the remedy of rescission and restitution. This simple dichotomy of contract remedies applies broadly in both common law and civil law practice. We show here that this remedial regime allows parties to write simple contracts that induce first-best cooperative investments.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1532815_code462513.pdf?abstractid=1524327&mirid=1
Richard R. W. Brooks
Yale University - Law School
Alexander Stremitzer
Yale Law School; University of Bonn - Economics Department
December 16, 2009
Yale Law & Economics Research Paper No. 396
Abstract:
A party dissatisfied with the contractual performance of a counterparty is typically able to pursue a variety of legal recourses. Within this apparent variety lurk two fundamental alternatives. The aggrieved party may (i) “affirm” the contract and seek money damages or specific performance; or (ii) “disaffirm” the contract with the remedy of rescission and restitution. This simple dichotomy of contract remedies applies broadly in both common law and civil law practice. We show here that this remedial regime allows parties to write simple contracts that induce first-best cooperative investments.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1532815_code462513.pdf?abstractid=1524327&mirid=1