Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Incomplete Contracts with Asymmetric Information: Exclusive Versus Optional Remedies

Incomplete Contracts with Asymmetric Information: Exclusive Versus Optional Remedies Scholars have been debating for years the comparative advantage of damages and specific performance. Yet, most work has compared a single remedy contract to another single remedy contract. But contract law provides the non-breaching party with a variety of optional remedies to choose from in case of a breach, and parties themselves regularly write contracts which provide such options. In this article, we start filling this gap by studying multi-remedy contracts. Specifically, we compare a contract that grants the non-breaching party an option to choose between liquidated damages and specific performance with an exclusive remedy contract, which restricts the non-breaching party’s remedy to liquidated damages only. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Law and Economics Review Oxford University Press

Incomplete Contracts with Asymmetric Information: Exclusive Versus Optional Remedies

Loading next page...
 
/lp/oxford-university-press/incomplete-contracts-with-asymmetric-information-exclusive-versus-50GcRoZw0a
Publisher
Oxford University Press
Copyright
© The Author 2006. Published by Oxford University Press on behalf of the American Law and Economics Association. All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org
ISSN
1465-7252
eISSN
1465-7260
DOI
10.1093/aler/ahl011
Publisher site
See Article on Publisher Site

Abstract

Scholars have been debating for years the comparative advantage of damages and specific performance. Yet, most work has compared a single remedy contract to another single remedy contract. But contract law provides the non-breaching party with a variety of optional remedies to choose from in case of a breach, and parties themselves regularly write contracts which provide such options. In this article, we start filling this gap by studying multi-remedy contracts. Specifically, we compare a contract that grants the non-breaching party an option to choose between liquidated damages and specific performance with an exclusive remedy contract, which restricts the non-breaching party’s remedy to liquidated damages only.

Journal

American Law and Economics ReviewOxford University Press

Published: Jan 1, 2006

There are no references for this article.