Damage Measures for Inadvertant Breach of Contract
Ivan P. L. Png
National University of Singapore
Lucian A. Bebchuk
Harvard Law School; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR) and European Corporate Governance Institute (ECGI)
International Review of Law and Economics, Vol. 19, 1999
We analyze situations of inadvertant rather than deliberate breach and consider the role of alternative damages remedies. Expectation damages induce excessive reliance, while reliance damages induce excessive reliance and under-efficient precaution. Overall, expectation damages are Pareto-superior to reliance damages.
Note: This is a description of the paper, and is not the actual abstract.
Date posted: March 29, 2000