Three Proposals to Harness Private Information in Contract

16 Pages Posted: 17 Sep 1997

See all articles by Ian Ayres

Ian Ayres

Yale University - Yale Law School; Yale University - Yale School of Management

Date Written: August 1997

Abstract

Savvy judges realize that they are normally less informed than private litigants and will accordingly be prone to error in deciding cases. Judges in deciding contract cases should therefore try to harness the parties' private information. This paper applies this idea of harnessing private information to make three proposals about how judges should decide contracts cases. In particular, I favor (1) interpretive safe harbors, (2) extending Hadley v. Baxendale to benefit buyers as well as sellers; and (3) giving defendants the option of making injunctions inalienable.

JEL Classification: K12

Suggested Citation

Ayres, Ian, Three Proposals to Harness Private Information in Contract (August 1997). Available at SSRN: https://ssrn.com/abstract=56408 or http://dx.doi.org/10.2139/ssrn.56408

Ian Ayres (Contact Author)

Yale University - Yale Law School ( email )

P.O. Box 208215
New Haven, CT 06520-8215
United States
203-432-7101 (Phone)
203-432-2592 (Fax)

Yale University - Yale School of Management

135 Prospect Street
P.O. Box 208200
New Haven, CT 06520-8200
United States

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