21 Pages Posted: 17 Mar 2008
Date Written: March 2008
A promisor is strictly liable for breaching a contract, according to the standard account. However, some cases and doctrines appear to recognize that a promisor will not be liable, or will face reduced damages, if the breach was the result of inadvertence rather than fault or willfulness. A negligence-based system of contract law can be given an economic interpretation, and it is shown that such a system is in some respects more attractive than the strict-liability system.
Keywords: liability, breach of contract
Suggested Citation: Suggested Citation
Posner, Eric A., Fault in Contract Law (March 2008). U of Chicago Law & Economics, Olin Working Paper No. 396. Available at SSRN: https://ssrn.com/abstract=1106399 or http://dx.doi.org/10.2139/ssrn.1106399