Economics of Contract Law

2017 ◽  
pp. 2-19
Author(s):  
Douglas G. Baird
Keyword(s):  
Contract Theory ◽  
Law And Economics ◽  
Contract Design ◽  
Contract Law ◽  
Specific Performance ◽  
The Law ◽  
Default Rules ◽  
The Relationship

Chapter 1 reviews the evolution of the law and economics of contract over the last 4 decades, beginning with the emergence of the idea of “efficient breach” in the early 1970s. It explores expectation damages, reliance damages, and specific performance, and then goes on to examine the effect that the possibility of renegotiation has on the shape of contract law. It then turns to the idea of contract law as a set of default rules, and discusses the role of contract law in mass markets. It concludes with a discussion of the relationship between the law and economics of contract and the problem of contract design and contract theory.

Contract as Promise: Lessons Learned

2019 ◽  
Vol 20 (2) ◽  
pp. 367-379
Author(s):  
Charles Fried
Keyword(s):  
Twentieth Century ◽  
Contract Theory ◽  
Choice Theory ◽  
Contract Law ◽  
Lessons Learned ◽  
Self Determination ◽  
Theory Approach ◽  
The Law ◽  
The Way

Abstract In The Choice Theory of Contracts, Hanoch Dagan and Michael Heller state that by arguing “that autonomy matters centrally to contract,” Contract as Promise makes an “enduring contribution . . . but [its] specific arguments faltered because [they] missed the role of diverse contract types and because [it] grounded contractual freedom in a flawed rights-based view. . .. We can now say all rights-based arguments for contractual autonomy have failed.” The authors conclude that their proposed choice theory “approach returns analysis to the mainstream of twentieth-century liberalism – a tradition concerned with enhancing self-determination that is mostly absent in contract theory today.” Perhaps the signal flaw in Contract as Promise they sought to address was the homogenization of all contract types under a single paradigm. In this Article, I defend the promise principle as the appropriate paradigm for the regime of contract law. Along the way I defend the Kantian account of this subject, while acknowledging that state enforcement necessarily introduces elements — both normative and institutional — for which that paradigm fails adequately to account. Of particular interest and validity is Dagan and Heller’s discussion of contract types, to which the law has always and inevitably recurred. They show how this apparent constraint on contractual freedom actually enhances freedom to contract. I discuss what I have learned from their discussion: that choice like languages, is “lumpy,” so that realistically choices must be made between and framed within available types, off the rack, as it were, and not bespoke on each occasion. I do ask as well how these types come into being mutate, and can be deliberately adapted to changing circumstances.

‘Fraud’ and ‘Misleading Commercial Practices’: Modernising the Law of Defects in Consent

2016 ◽  
Vol 2016 (4) ◽  
Author(s):  
Francesco Paolo Patti
Keyword(s):  
Law And Economics ◽  
Contract Law ◽  
European Contract ◽  
Consumer Law ◽  
A Value ◽  
The Law ◽  
Civil Codes ◽  
The Relationship ◽  
Market Strategies ◽  
European Contract Law

AbstractThe rules provided by the civil codes on defects in consent were designed at a time when the notion of consumer law did not exist and fairness at the pre-contractual stage was not widely considered as a value worthy of protection. Matters have changed radically in the last three decades. The proliferation of rules protecting consumers on a European level, especially through information duties and rights of withdrawal, and the growing impact of general clauses, has led to a fragmentation of domestic contract law. This clash of different sets of rules is particularly conspicuous in the field of unfair commercial practices as the European legislator has not made provision for specific private law remedies for individual consumers in cases of misleading and aggressive commercial practices. This article addresses the particular issue of the applicability of the law of fraudulent misrepresentation to cases of misleading commercial practices. The purpose is to reconsider ‘fraud’ in terms of a defect in consent, in a manner that is both more in line with the modern features of European contract law and better able to counteract new market strategies based on exploiting cognitive weaknesses. The focus is thus put on the relationship between pre-contractual information duties and defective consent, as well as on some insights of law and economics, which demonstrate that ‘consent theories’ or ‘will theories’ cannot provide precise criteria to indicate when a contract should be void. In conclusion, a possible legislative intervention aiming to substitute the rules on fraud for a set of remedies for violation of information duties is discussed.

scholarly journals Economics, Public Policy, and Law

1996 ◽  
Vol 26 (1) ◽  
pp. 1
Author(s):  
Susan Rose-Ackerman
Keyword(s):  
Public Policy ◽  
Public Administration ◽  
Law And Economics ◽  
Common Law ◽  
Collective Decision Making ◽  
The World ◽  
The Common ◽  
The Law ◽  
The Relationship

Some lawyers view the law as a self-contained body of wisdom independent of the contaminating influences of other branches of knowledge. Such lawyers resist efforts to combine law with economics. In doing so, the author argues that these lawyers miss an opportunity for gaining a deeper understanding of the way law works in the world. This article thus explores the relationship between economics as a methodology, public policy, and the law. The author first tackles the argument that the economist's concentration on efficiency is flawed because it is unconcerned with justice. The author then discusses the role of economics in light of collective decision-making found throughout society. Economics and the design of efficient regulatory schemes are also discussed, as well as in the comparative law context. It is argued that the intersection between the common law and economics must be widely accepted, even though it suffers from limitations in resolving difficult policy issues. Thus, the author concludes that economic analysis alone cannot be an all-purpose resolver of the problems of the modern capitalist welfare state. Nonetheless, economic frameworks remain useful for lawyerly thinking; law and economics must thus be joined by a broader range of subjects, including political science and public administration. 

Parliamentarism and the Legislative Branch

2017 ◽  
Author(s):  
András Sajó ◽  
Renáta Uitz
Keyword(s):  
Decision Making ◽  
Political Parties ◽  
Legislative Branch ◽  
Effective Decision ◽  
The Law ◽  
Internal Operations ◽  
Effective Decision Making ◽  
The Relationship ◽  
Law Making

This chapter examines the relationship between parliamentarism and the legislative branch. It explores the evolution of the legislative branch, leading to disillusionment with the rationalized law-making factory, a venture run by political parties beyond the reach of constitutional rules. The rise of democratically bred party rule is positioned between the forces favouring free debate versus effective decision-making in the legislature. The chapter analyses the institutional make-up and internal operations of the legislature, the role of the opposition in the legislative assembly, and explores the benefits of bicameralism for boosting the powers of the legislative branch. Finally, it looks at the law-making process and its outsourcing via delegating legislative powers to the executive.

Corporate Social Responsibility and Government: The Role of Discretion for Engagement with Public Policy

2021 ◽  
pp. 1-29
Author(s):  
Jette Steen Knudsen ◽  
Jeremy Moon
Keyword(s):  
Public Policy ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Integrated Framework ◽  
The Law ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

We investigate the relationship of corporate social responsibility (CSR) (often assumed to reflect corporate voluntarism) and government (often assumed to reflect coercion). We distinguish two broad perspectives on the CSR and government relationship: the dichotomous (i.e., government and CSR are / should be independent of one another) and the related (i.e., government and CSR are / should be interconnected). Using typologies of CSR public policy and of CSR and the law, we present an integrated framework for corporate discretion for engagement with public policy for CSR. We make four related contributions. First, we explain the dichotomous and the related perspectives with reference to their various assumptions and analyses. Second, we demonstrate that public policy for CSR and corporate discretion coexist and interact. Specifically, we show, third, that public policy for CSR can inform and stimulate corporate discretion and, fourth, that corporations have discretion for CSR, particularly as to how corporations engage with such policy.

The prospects for pluralism in contract theory

Legal Studies ◽  
2021 ◽  
pp. 1-20
Author(s):  
Zhong Xing Tan
Keyword(s):  
Contract Theory ◽  
Practical Reasoning ◽  
Contemporary Literature ◽  
Contract Law ◽  
Macro Level ◽  
Meso Level ◽  
Specific Performance ◽  
Micro Level

Abstract This paper explores the promise of pluralism in the realm of contract law. I begin by identifying and rejecting conceptual strategies adopted by monistic and dualistic approaches. Turning towards pluralism, I evaluate three versions in contemporary literature: pluralism across contracting spheres and types, pluralism through consensus and convergence, and pluralism through localised values-balancing and practical reasoning. I suggest embracing some pluralism about contract pluralism, by using these models to construct a framework of ‘meta-pluralism’, where at the macro-level, we are concerned with plural spheres of contracting activity; at the meso-level, a variety of trans-substantive interpretive concepts that receive some measure of juristic consensus; and at the micro-level, practical reasoning through particularistic analysis of case-specific considerations. I illustrate the meta-pluralistic framework through a case study on the varieties of specific performance, and explain how the proposed pluralistic framework enriches our understanding of the nature of contract.

scholarly journals PERAN KONVENSI HUKUM LAUT INTERNASIONAL PBB 1982 DAN INTERNATIONAL MARITIME ORGANIZATION (IMO) BAGI KESELAMATAN DAN KEAMANAN ANAK BUAH KAPAL (ABK) SELAMA BERLAYAR DALAM PELAYARAN INTERNASIONAL

2020 ◽  
Vol 2 (1) ◽  
pp. 160-178
Author(s):  
Piseth Chann
Keyword(s):  
Human Resources ◽  
United Nations ◽  
Ad Hoc ◽  
International Management ◽  
International Maritime Organization ◽  
Law Of The Sea ◽  
United Nations Convention ◽  
The Law ◽  
The Relationship

ABSTRAKEksploitasi terhadap tenaga kerja di laut lepas, khususnya ABK, masih sering terjadi. Meskipun tidak diatur secara spesifik, keselamatan dan keamanan ABK dapat dikaitkan dengan KHL PBB 1982, Pasal 94. Tujuan dari kajian ini adalah untuk menjelaskan keterkaitan Pasal 94 KHL dengan perlindungan terhadap ABK, peran IMO terhadap keselamatan dan keamanan ABK, dan kerja sama antara IMO dan ILO dalam menangani masalah eksploitasi sumber daya manusia dalam pelayaran internasional. Dari kajian ini dapat dijelaskan bahwa dalam KHL PBB 1982, Pasal 94 Ayat 2 (b) dan 3 (b) terdapat kewajiban yang dibebankan kepada Negara Bendera untuk ikut bertanggung jawab jika ABK mendapatkan suatu masalah. Sementara itu, sebagai agen khusus PBB, IMO telah mengadopsi satu Kode Manajemen Internasional dengan tujuan untuk memastikan keselamatan manusia dan menghindari kerusakan lingkungan laut. IMO, ILO dan Ad Hoc juga membentuk kerja sama tripartit untuk mengatur hal-hal yang berkaitan dengan ketenagakerjaan di laut. Kata Kunci: anak buah kapal; IMO; ILO; keselamatan dan keamanan ABSTRACTExploitation of workers on the high seas, especially the ship's crew, is still common. Although not specifically regulated, the safety and security of the ship's crew can be linked to the 1982 United Nations Convention on the Law of the Sea (UNCLOS), Article 94. The purpose of this study is to explain the relationship between Article 94 UNCLOS and the protection of ship's crew, the role of International Maritime Organization (IMO) in the safety and security of ship's crew, and cooperation between IMO and ILO in dealing with the problem of exploitation of human resources in international shipping. From this study, it can be explained that in the 1982 United Nations Convention on the Law of the Sea, Article 94 Paragraphs 2 (b) and 3 (b) there was an obligation imposed on the Flag State to take responsibility if the ship's crew had a problem. Meanwhile, as a UN special agent, IMO has adopted an International Management Code to ensure human safety and avoid damage to the marine environment. IMO, ILO and Ad Hoc also formed tripartite cooperation to regulate matters related to employment at sea.Keywords: ILO; IMO; security and safety; ship's crew

The gypsy’s lot: myth and reality

2017 ◽  
Author(s):  
Robert Jago
Keyword(s):  
Human Rights ◽  
Legal System ◽  
Lived Experiences ◽  
European Court ◽  
The Law ◽  
The Uk ◽  
The Relationship

This chapter focuses on the lived experiences of gypsies (collectively referred to as gypsies rather than Roma or travellers). The author argues that the relationship between the legal system and the specific lifestyle of this group is itself causing many tensions which cannot be separated from the long-held myths about gypsies. Jago shows how the standing of gypsies in the UK legal system has, in turn, become the object of various myths. He demonstrates how judgements by the European Court of Human Rights in favour of gypsy claims created in many an image of the law being always on the side of the gypsy. A perception which Jago demonstrates is far from true. After addressing the nature and role of myths in general the author illustrates the tension between positive, romanticised myths about the freedom of gypsy lifestyle and three derogatory myths, namely gypsies as "child-snatchers", as thieves and as "land grabbers". Jago illustrates that these myths are linked to deep-rooted beliefs around property and its ownership.

5. Consideration and Promissory Estoppel

Contract Law ◽  
2020 ◽  
pp. 142-244
Author(s):  
Ewan McKendrick
Keyword(s):  
Contract Law ◽  
Limited Effect ◽  
The Future ◽  
The Law

The doctrine of consideration is one feature of English contract law that readily distinguishes it from the law of contract in civilian jurisdictions. Its essence is that a promisee cannot enforce a promise unless he has given or promised to give something in exchange for the promise, or unless the promisor has obtained (or been promised) something in return. In other words, there must have been a bargain between the parties. This chapter analyses the current scope of the doctrine of consideration, particularly the rule that consideration must be sufficient but need not be adequate; the pre-existing duty rule and the question whether a promise to pay, or part payment of a debt, is good consideration for the discharge of the entire deb; and the rule that past consideration is not good consideration. It also examines the role of promissory estoppel in contract cases. An estoppel gives (at least limited) effect to a promise that would otherwise be unenforceable, thus the effect of an estoppel may be to supplement, or even supplant, the doctrine of consideration. The chapter concludes with a brief discussion of the future of the doctrine of consideration and, in particular, draws on the critique of consideration developed by Professor Atiyah.

scholarly journals Mnemonic Populism: The Polish Holocaust Law and its Afterlife

2020 ◽  
pp. 1-13 ◽  
Author(s):  
Kornelia Kończal
Keyword(s):  
Significant Other ◽  
The Past ◽  
Cultural Foundations ◽  
The Holocaust ◽  
Heated Debate ◽  
History Of ◽  
The Law ◽  
The Relationship

In early 2018, the Polish parliament adopted controversial legislation criminalising assertions regarding the complicity of the ‘Polish Nation’ and the ‘Polish State’ in the Holocaust. The so-called Polish Holocaust Law provoked not only a heated debate in Poland, but also serious international tensions. As a result, it was amended only five months after its adoption. The reason why it is worth taking a closer look at the socio-cultural foundations and political functions of the short-lived legislation is twofold. Empirically, the short history of the Law reveals a great deal about the long-term role of Jews in the Polish collective memory as an unmatched Significant Other. Conceptually, the short life of the Law, along with its afterlife, helps capture poll-driven, manifestly moralistic and anti-pluralist imaginings of the past, which I refer to as ‘mnemonic populism’. By exploring the relationship between popular and political images of the past in contemporary Poland, this article argues for joining memory and populism studies in order to better understand what can happen to history in illiberal surroundings.

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