Fault in Contract Law
Eric A. Posner
University of Chicago - Law School
U of Chicago Law & Economics, Olin Working Paper No. 396
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.
Number of Pages in PDF File: 21
Keywords: liability, breach of contract
Date posted: March 17, 2008