Equity, Efficiency, and Ethics in Remedies for Breach of Contract: Theory and Experimental Evidence
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| Main Author: | |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
Cham
Springer International Publishing
2022
Cham Springer |
| Series: | International Law and Economics
|
| Subjects: | |
| Online Access: | Inhaltsverzeichnis Klappentext |
| Physical Description: | XXI, 228 Seiten Diagramme |
| ISBN: | 9783031108037 |
| ISSN: | 2364-186X |
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Record in the Search Index
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| adam_text | 1 Introduction ...................................................................................................... 1.1 Objective................................................................................................. 1.2 Research Questions ............................................................................... 1.3 Outline ................................................................................................... 2 Theories of Contract and Contract Law ................................................... 2.1 Introduction ........................................................................................... 2.1.1 The Legal Concept of Contract in Common and Civil Law Systems ................................................................ 2.1.2 Legal Enforcement of Contracts in Common and Civil Law Systems ................................................................ 28 2.2 Promissory Theories ............................................................................. 2.3 Reliance Theories ................................................................................. 2.4 Economic Theories ............................................................................... 2.4.1 Anticipation of Opportunism and the Protection of the Restitution Interest .......................................... 49 2.4.2 Loss of Reliance Investments and the Protection of the Reliance Interest .............................................. 2.4.3 The Theory of Efficient Breach and the Protection of the Expectation
Interest.......................................... 52 2.4.4 The Role of Compensatory Remedies in Economic Theories ........................................................................ 56 2.5 Conclusion ............................................................................................. 1 11 12 16 19 20 21 35 44 46 50 58
3 Disagreement, Conflict, and Retaliation in Breach of Contract.......... 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4 Reciprocity and Legal Relief in Breach of Contract............................... 4.1 4.2 4.3 4.4 4.5 4.6 5 Introduction .......................................................................................... Contractual Disputes and the Incompleteness of Contracts............. Disagreement on the Moral Value of Breach ..................................... Disagreement on the Harmful Consequences of Breach ................. Cognitive Biases that Facilitate Disagreement ................................. Retaliation to Perceived Wrong as the Product of Disagreement........................................................................... 80 Conclusion ............................................................................................ Introduction .......................................................................................... Retaliation and Punishment in Experiments ..................................... 4.2.1 Retaliation in Experimental Games ....................................... 4.2.2 Retaliation to Breach of Contract........................................... Retaliation in the Contractual Model ................................................. Aggrievement from Breach and Possible Causes of Retaliation .... 4.4.1 Loss of Expected and Promised Gains.................................... 4.4.2 Inequality from Breach ........................................................... 4.4.3 Inefficiency from Breach
......................................................... Social Welfare and Retaliation to Breach........................................... 4.5.1 Social Costs and Benefits of Retaliation under Perfect Legal Enforcement ...................................................... 118 4.5.2 Social Costs and Benefits of Retaliation under Imperfect LegalEnforcement............................ 120 Conclusion ............................................................................. Retaliation, Remedies, and Contracts ........................................................ 5.1 5.2 5.3 5.4 5.5 Introduction .......................................................................................... Partie’s Behavior Under Investigation and Related Literature......... The Empirical Study ............................................................................ 5.3.1 The Implemented Trade Game ................................................ 5.3.2 Experimental Treatments.......................................................... 5.3.3 Strict Rational Choice Predictions .......................................... 5.3.4 Alternative Hypotheses ............................................................ 5.3.5 Experimental Procedure........................................................... Results................................................................................................... 5.4.1 Descriptive Results.................................................................... 5.4.2 Regression Results ................................................................... 5.4.3
Analysis of Social Welfare ...................................................... Conclusion ............................................................................................ 61 61 65 70 73 77 86 89 90 94 94 103 106 110 112 113 116 117 123 127 127 132 135 136 139 142 146 148 151 151 157 162 164
6 implications and Normative Analysis of Remedies for Breach .......... 6.1 Introduction .......................................................................................... 6.2 Damages for Breach ............................................................................. 6.2.1 The Protection of the Expectation Interest in Common Law and Civil Law Systems ....................................... 173 6.2.2 Social Welfare Under Expectation Damages ....................... 6.2.3 The Protection of the Disgorgement Interest in Common Law and Civil Law Systems ................. 178 6.2.4 Social Welfare Under Disgorgement Damages in the Absence of Renegotiation................................. 6.2.5 Social Welfare Under Disgorgement Damages in the Presence of Renegotiation ............................... 184 6.3 Specific Performance ............................................................................ 6.3.1 Specific Performance in Common and Civil Law Systems ........................................................................ 186 6.3.2 Limits of a Claim to Specific Performance ............................ 6.3.3 Social Welfare Under Specific Performance in the Absence of Renegotiation................................. 6.3.4 Social Welfare Under Specific Performance in the Presence of Renegotiation ............................... 194 6.4 Normative Analysis............................................................................... 6.4.1 The American Insistence on Expectation Damages.............. 6.4.2 The French Expansion of Specific Performance with Astreintes
............................................................ 198 6.4.3 The German Junction of Specific Performance, Expectation,and Disgorgement Damages.................. 201 6.4.4 The British Acceptance of Partial Disgorgement (Hypothetical Bargain Damages) ............................... 202 6.5 Conclusion ............................................................................................ 204 7 Conclusion ...................................................................................................... 207 Bibliography ........................................................................................................ 219 167 167 172 176 182 186 190 192 195 197
This book analyzes the conflict that emerges between parties after a breach of contract and how different legal remedies can best reduce conflict. Causes for conflict include equity, efficiency, and ethical reasons that parties might consider and use to blame the other or to justify breach. In the end, if not resolved through apologies or renegotiation, conflict leads to aggrievement and behavioral reactions in form of retaliation by the victim against the promisor in breach. The book provides empirical evidence from laboratory experiments for how individuals react to perceived wrongful acts such as breach of contract and for the function of legal remedies to reduce retaliation by disappointed promisees in providing them compensation. It reveals how the inequality in the outcome, and not the inefficiency of breach of contract, causes aggrievement and retaliation by victims. The book concludes with a comparative law and economic analysis of remedies for breach of contract adopted in different leading jurisdictions, with important normative implications for the American insistence on expectation damages, the French expansion of specific performance with “astreinte”, the German junction of specific performance, expectation damages, and disgorgement damages, and the British timid acceptance of partial disgorgement damages. The book will appeal to scholars, researchers, and students of economics and law, interested in a better understanding of remedies for breach of contract.
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| adam_txt |
1 Introduction . 1.1 Objective. 1.2 Research Questions . 1.3 Outline . 2 Theories of Contract and Contract Law . 2.1 Introduction . 2.1.1 The Legal Concept of Contract in Common and Civil Law Systems . 2.1.2 Legal Enforcement of Contracts in Common and Civil Law Systems . 28 2.2 Promissory Theories . 2.3 Reliance Theories . 2.4 Economic Theories . 2.4.1 Anticipation of Opportunism and the Protection of the Restitution Interest . 49 2.4.2 Loss of Reliance Investments and the Protection of the Reliance Interest . 2.4.3 The Theory of Efficient Breach and the Protection of the Expectation
Interest. 52 2.4.4 The Role of Compensatory Remedies in Economic Theories . 56 2.5 Conclusion . 1 11 12 16 19 20 21 35 44 46 50 58
3 Disagreement, Conflict, and Retaliation in Breach of Contract. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4 Reciprocity and Legal Relief in Breach of Contract. 4.1 4.2 4.3 4.4 4.5 4.6 5 Introduction . Contractual Disputes and the Incompleteness of Contracts. Disagreement on the Moral Value of Breach . Disagreement on the Harmful Consequences of Breach . Cognitive Biases that Facilitate Disagreement . Retaliation to Perceived Wrong as the Product of Disagreement. 80 Conclusion . Introduction . Retaliation and Punishment in Experiments . 4.2.1 Retaliation in Experimental Games . 4.2.2 Retaliation to Breach of Contract. Retaliation in the Contractual Model . Aggrievement from Breach and Possible Causes of Retaliation . 4.4.1 Loss of Expected and Promised Gains. 4.4.2 Inequality from Breach . 4.4.3 Inefficiency from Breach
. Social Welfare and Retaliation to Breach. 4.5.1 Social Costs and Benefits of Retaliation under Perfect Legal Enforcement . 118 4.5.2 Social Costs and Benefits of Retaliation under Imperfect LegalEnforcement. 120 Conclusion . Retaliation, Remedies, and Contracts . 5.1 5.2 5.3 5.4 5.5 Introduction . Partie’s Behavior Under Investigation and Related Literature. The Empirical Study . 5.3.1 The Implemented Trade Game . 5.3.2 Experimental Treatments. 5.3.3 Strict Rational Choice Predictions . 5.3.4 Alternative Hypotheses . 5.3.5 Experimental Procedure. Results. 5.4.1 Descriptive Results. 5.4.2 Regression Results . 5.4.3
Analysis of Social Welfare . Conclusion . 61 61 65 70 73 77 86 89 90 94 94 103 106 110 112 113 116 117 123 127 127 132 135 136 139 142 146 148 151 151 157 162 164
6 implications and Normative Analysis of Remedies for Breach . 6.1 Introduction . 6.2 Damages for Breach . 6.2.1 The Protection of the Expectation Interest in Common Law and Civil Law Systems . 173 6.2.2 Social Welfare Under Expectation Damages . 6.2.3 The Protection of the Disgorgement Interest in Common Law and Civil Law Systems . 178 6.2.4 Social Welfare Under Disgorgement Damages in the Absence of Renegotiation. 6.2.5 Social Welfare Under Disgorgement Damages in the Presence of Renegotiation . 184 6.3 Specific Performance . 6.3.1 Specific Performance in Common and Civil Law Systems . 186 6.3.2 Limits of a Claim to Specific Performance . 6.3.3 Social Welfare Under Specific Performance in the Absence of Renegotiation. 6.3.4 Social Welfare Under Specific Performance in the Presence of Renegotiation . 194 6.4 Normative Analysis. 6.4.1 The American Insistence on Expectation Damages. 6.4.2 The French Expansion of Specific Performance with Astreintes
. 198 6.4.3 The German Junction of Specific Performance, Expectation,and Disgorgement Damages. 201 6.4.4 The British Acceptance of Partial Disgorgement (Hypothetical Bargain Damages) . 202 6.5 Conclusion . 204 7 Conclusion . 207 Bibliography . 219 167 167 172 176 182 186 190 192 195 197
This book analyzes the conflict that emerges between parties after a breach of contract and how different legal remedies can best reduce conflict. Causes for conflict include equity, efficiency, and ethical reasons that parties might consider and use to blame the other or to justify breach. In the end, if not resolved through apologies or renegotiation, conflict leads to aggrievement and behavioral reactions in form of retaliation by the victim against the promisor in breach. The book provides empirical evidence from laboratory experiments for how individuals react to perceived wrongful acts such as breach of contract and for the function of legal remedies to reduce retaliation by disappointed promisees in providing them compensation. It reveals how the inequality in the outcome, and not the inefficiency of breach of contract, causes aggrievement and retaliation by victims. The book concludes with a comparative law and economic analysis of remedies for breach of contract adopted in different leading jurisdictions, with important normative implications for the American insistence on expectation damages, the French expansion of specific performance with “astreinte”, the German junction of specific performance, expectation damages, and disgorgement damages, and the British timid acceptance of partial disgorgement damages. The book will appeal to scholars, researchers, and students of economics and law, interested in a better understanding of remedies for breach of contract. |
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| id | DE-604.BV049533305 |
| illustrated | Not Illustrated |
| index_date | 2024-07-03T23:27:18Z |
| indexdate | 2024-07-10T10:09:58Z |
| institution | BVB |
| isbn | 9783031108037 |
| issn | 2364-186X |
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| physical | XXI, 228 Seiten Diagramme |
| publishDate | 2022 |
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| publisher | Springer International Publishing Springer |
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| series2 | International Law and Economics |
| spelling | Mittlaender, Sergio Verfasser (DE-588)1285000757 aut Equity, Efficiency, and Ethics in Remedies for Breach of Contract Theory and Experimental Evidence Sergio Mittlaender Cham Springer International Publishing 2022 Cham Springer XXI, 228 Seiten Diagramme txt rdacontent n rdamedia nc rdacarrier International Law and Economics 2364-186X Übereinkommen über Schutzmaßnahmen 1994 Dezember 23 (DE-588)7575143-4 gnd rswk-swf Law and Economics Common Contract Law Behavioral Economics Theories of Law, Philosophy of Law, Legal History Civil Law Law and economics Contracts Common law Economics—Psychological aspects Law—Philosophy Law—History Civil law Wirtschaftsrecht (DE-588)4066510-0 gnd rswk-swf Vertragsverletzung (DE-588)4188089-4 gnd rswk-swf Wirtschaftsfreiheit (DE-588)4415898-1 gnd rswk-swf Übereinkommen über Schutzmaßnahmen 1994 Dezember 23 (DE-588)7575143-4 u Wirtschaftsfreiheit (DE-588)4415898-1 s Wirtschaftsrecht (DE-588)4066510-0 s Vertragsverletzung (DE-588)4188089-4 s DE-604 Erscheint auch als Online-Ausgabe 978-3-031-10804-4 Digitalisierung UB Augsburg - ADAM Catalogue Enrichment application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=034878892&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis Digitalisierung UB Augsburg - ADAM Catalogue Enrichment application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=034878892&sequence=000003&line_number=0002&func_code=DB_RECORDS&service_type=MEDIA Klappentext |
| spellingShingle | Mittlaender, Sergio Equity, Efficiency, and Ethics in Remedies for Breach of Contract Theory and Experimental Evidence Übereinkommen über Schutzmaßnahmen 1994 Dezember 23 (DE-588)7575143-4 gnd Law and Economics Common Contract Law Behavioral Economics Theories of Law, Philosophy of Law, Legal History Civil Law Law and economics Contracts Common law Economics—Psychological aspects Law—Philosophy Law—History Civil law Wirtschaftsrecht (DE-588)4066510-0 gnd Vertragsverletzung (DE-588)4188089-4 gnd Wirtschaftsfreiheit (DE-588)4415898-1 gnd |
| subject_GND | (DE-588)7575143-4 (DE-588)4066510-0 (DE-588)4188089-4 (DE-588)4415898-1 |
| title | Equity, Efficiency, and Ethics in Remedies for Breach of Contract Theory and Experimental Evidence |
| title_auth | Equity, Efficiency, and Ethics in Remedies for Breach of Contract Theory and Experimental Evidence |
| title_exact_search | Equity, Efficiency, and Ethics in Remedies for Breach of Contract Theory and Experimental Evidence |
| title_exact_search_txtP | Equity, Efficiency, and Ethics in Remedies for Breach of Contract Theory and Experimental Evidence |
| title_full | Equity, Efficiency, and Ethics in Remedies for Breach of Contract Theory and Experimental Evidence Sergio Mittlaender |
| title_fullStr | Equity, Efficiency, and Ethics in Remedies for Breach of Contract Theory and Experimental Evidence Sergio Mittlaender |
| title_full_unstemmed | Equity, Efficiency, and Ethics in Remedies for Breach of Contract Theory and Experimental Evidence Sergio Mittlaender |
| title_short | Equity, Efficiency, and Ethics in Remedies for Breach of Contract |
| title_sort | equity efficiency and ethics in remedies for breach of contract theory and experimental evidence |
| title_sub | Theory and Experimental Evidence |
| topic | Übereinkommen über Schutzmaßnahmen 1994 Dezember 23 (DE-588)7575143-4 gnd Law and Economics Common Contract Law Behavioral Economics Theories of Law, Philosophy of Law, Legal History Civil Law Law and economics Contracts Common law Economics—Psychological aspects Law—Philosophy Law—History Civil law Wirtschaftsrecht (DE-588)4066510-0 gnd Vertragsverletzung (DE-588)4188089-4 gnd Wirtschaftsfreiheit (DE-588)4415898-1 gnd |
| topic_facet | Übereinkommen über Schutzmaßnahmen 1994 Dezember 23 Law and Economics Common Contract Law Behavioral Economics Theories of Law, Philosophy of Law, Legal History Civil Law Law and economics Contracts Common law Economics—Psychological aspects Law—Philosophy Law—History Civil law Wirtschaftsrecht Vertragsverletzung Wirtschaftsfreiheit |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=034878892&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=034878892&sequence=000003&line_number=0002&func_code=DB_RECORDS&service_type=MEDIA |
| work_keys_str_mv | AT mittlaendersergio equityefficiencyandethicsinremediesforbreachofcontracttheoryandexperimentalevidence |