Economics of Contract Law

ECONOMIC PRINCIPLES OF LAW, Cento Veljanovski, Cambridge University Press, 2007

79 Pages Posted: 29 Jul 2007 Last revised: 23 Jan 2020

See all articles by Cento Veljanovski

Cento Veljanovski

Case Associates; Institute of Economic Affairs

Date Written: July 1, 2006


This paper provides an introduction to the economics of contract law. It begins by setting out the basic elements of the economics of contract, contractual problems, and abuses. It then examines the purpose of contract law, its various doctrines (eg. consideration, disclosure and mistake) and remedies (specific performance and different damage measures such as expectation, restitution, completion, liquidated and non-pecuniary damages) evaluated in terms of their impact on efficient breach, efficient reliance, risk-bearing and compensation. The discussion serves as a non-technical introduction for lawyers to this important branch of the common law. The paper forms the contract chapter of the Economic Principles of Law published in June 2007. The full text can be obtained via the Cambridge University Press website.

Keywords: economics of law, contract, contract damages

JEL Classification: K10, K11, K14, K21, K32

Suggested Citation

Veljanovski, Cento, Economics of Contract Law (July 1, 2006). ECONOMIC PRINCIPLES OF LAW, Cento Veljanovski, Cambridge University Press, 2007, Available at SSRN:

Cento Veljanovski (Contact Author)

Case Associates ( email )

96 Kensington High Street
London, W8 4SG
United Kingdom
+44 (0)20 73764418 (Phone)


Institute of Economic Affairs

2 Lord North Street, Westminster
London, SW1P 3LB
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
PlumX Metrics