Off Contract Harms: The Real Effect of Liberal Rescission Rights on Contract Price

Abstract:     
In their recent article in The Yale Law Journal, Professors Richard R.W. Brooks and Alexander Stremitzer make the case for a liberal allowance of rescission and restitution — an “off the contract” remedy that allows a party to a contract to rescind following breach by a counterparty and to receive back the contract price. This Essay argues that Brooks and Stremitzer’s recommendations are based on an incomplete analysis of the effects of rescission rights on the marketplace and are ultimately misplaced.

Number of Pages in PDF File: 17

Keywords: Contracts, Economics, Microeconomics, Pricing, Consumer Economics, Firm Behavior, Monopoly, Insurance, Price Discrimination

JEL Classification: A1, D10, D11, D20, D21, D24, D41, D42, D60, D61, D63, H32, K12, L11, L12, L14, L21, M21

Accepted Paper Series