The Role of Fault in Contract Law
Chapter 12 considers the role of fault in contract law. Restatement Second of Contracts provides that “Contract liability is strict liability. It is an accepted maxim that pacta sunt servanda, contracts are to be kept. The obligor is therefore liable in damages for breach of contract even if he is without fault . . . .” Similarly, the Farnsworth’s treatise states that “contract law is, in its essential design, a law of strict liability, and the accompanying system of remedies operates without regard to fault.” These statements, and many others like them, are incorrect. As a normative matter fault should be a building block of contract law. One part of the human condition is that we hold many moral values concerning right and wrong, and therefore fault. Contract law cannot escape this condition.