Breach remedies inducing hybrid investments
نویسندگان
چکیده
منابع مشابه
Standard Breach Remedies , Quality Thresholds , and Cooperative Investments
When investments are non-verifiable, inducing cooperative investments with simple contracts may not be as difficult as previously thought. Indeed, modeling " expectation damages " close to legal practice, we show that the default remedy of contract law induces the first best. Hence, there is no need for privately stipulated remedies. Yet, in order to lower informational requirements of courts, ...
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Theory predicts that default breach remedies are immaterial whenever contracting costs are negligible. Some experimental studies, however, suggest that in practice default rules do matter, as they may a¤ect parties' preferences over contract terms. This paper presents results from an experiment designed to address the importance of default breach remedies for actual contract outcomes. We …nd th...
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Breach remedies serve an important role in protecting relationship-specific investments. The theoretical literature predicts that some commonly used types of breach remedies may protect too well, in the sense that they induce overinvestment. The driving forces behind this result are the complete insurance against potential separation that breach remedies may provide, and the possibility to prev...
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In this essay, I survey the three main remedial categories of the Convention on the International Sale of Goods (CISG) [specific performance, money damages, and goods-oriented remedies such as rejection and cure] from the vantage point of the economic literature on contract remedies, and discuss whether the rules set by the CISG are economically suitable for the particular transactions it gover...
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II. Legal Doctrines A. Restoration of the Equivalence Broken by Partial or Defective Performance 1. Damages for Vendor’s Breach in Land Sales and Price Abatement Ancillary to Specific Performance 2. Rent Abatement for Breach of Warranty of Habitability and other Obligations 3. Price Reduction under the CISG 4. Monetary Restitution for Non-Monetary Performance in Divisible Contracts B. Restorati...
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ژورنال
عنوان ژورنال: International Review of Law and Economics
سال: 2014
ISSN: 0144-8188
DOI: 10.1016/j.irle.2013.06.005