17 Pages Posted: 25 Apr 2011 Last revised: 22 Feb 2012
Date Written: April 24, 2011
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: 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