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

17 Pages Posted: 25 Apr 2011 Last revised: 22 Feb 2012

Michael Aikins

Yale University - Law School

Date Written: April 24, 2011

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.

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

Suggested Citation

Aikins, Michael, Off Contract Harms: The Real Effect of Liberal Rescission Rights on Contract Price (April 24, 2011). Yale Law Journal, Vol. 121, p. 69, 2011. Available at SSRN: https://ssrn.com/abstract=1821292

Michael Aikins (Contact Author)

Yale University - Law School ( email )

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