Abstract

http://ssrn.com/abstract=1976435
 
 

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Beyond Ex Post Expediency - An Ex Ante View of Rescission and Restitution


Richard R. W. Brooks


Yale University - Law School

Alexander Stremitzer


UCLA School of Law

December 23, 2011

Washington and Lee Law Review, Vol. 68, No. 3, p. 1171, 2011
Yale Law & Economics Research Paper 443
UCLA School of Law, Law-Econ Research Paper 12-04

Abstract:     
It is commonly held that if getting a contractual remedy was costless and fully compensatory, rescission followed by restitution would not exist as a remedy for breach of contract. This claim, we will demonstrate, is not correct. Rescission and restitution offer more than remedial convenience. Rational parties, we argue, would often desire a right of rescission followed by restitution even if damages were fully compensatory and costless to enforce. The mere presence of a threat to rescind, even if not carried out, exerts an effect on the behavior of parties. Parties can enlist this effect to increase the value of contracting.

Number of Pages in PDF File: 15

Keywords: contracts, rescission, rejection, restitution, optional remedies

JEL Classification: K12

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Date posted: December 25, 2011 ; Last revised: February 18, 2012

Suggested Citation

Brooks, Richard R. W. and Stremitzer, Alexander, Beyond Ex Post Expediency - An Ex Ante View of Rescission and Restitution (December 23, 2011). Washington and Lee Law Review, Vol. 68, No. 3, p. 1171, 2011; Yale Law & Economics Research Paper 443; UCLA School of Law, Law-Econ Research Paper 12-04. Available at SSRN: http://ssrn.com/abstract=1976435

Contact Information

Richard R. W. Brooks
Yale University - Law School ( email )
P.O. Box 208215
New Haven, CT 06520-8215
United States
Alexander Stremitzer (Contact Author)
UCLA School of Law ( email )
405 Hilgard Avenue
Box 90095-1476
Los Angeles, CA 90095-1476
United States
HOME PAGE: http://www.law.ucla.edu/faculty/all-faculty-profiles/professors/Pages/Alexander-Stremitzer.aspx
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