Economics Dictionary of ArgumentsHome
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| Contract law: Contract law is a branch of legal studies that governs the formation, interpretation, and enforcement of agreements between parties. It ensures that promises made in contracts are legally binding and enforceable, providing remedies if a contract is breached. This law underpins economic transactions, ensuring reliability and predictability in commercial and personal agreements. See also Contracts, Law, Contract theory._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Donald Wittman on Contract law - Dictionary of Arguments
Parisi I 429 Contract law/time/ex ante/ex post/Wittman: In contract law, marginal cost liability is known as the doctrine of mitigation of damages. The plaintiff in a breach of contract case cannot collect for losses (damages) that the plaintiff could have avoided by reasonable effort without risk of substantial loss or injury. In economic terms, “reasonable effort” means best response. >Marginal costs/Wittman. The plaintiff can collect, however, for the avoidance costs that he should undertake in response to the breach and any damage that would still occur if the optimal response were undertaken. His recovery against the defendant will be exactly the same regardless of whether he makes the effort to mitigate his loss. >Time/Wittman. Being second in the sequence only counts when the second party knows or has reason to know that the outcome of the first party was suboptimal. >Compensation/Wittman. Parisi I 430 Contracting involves relatively low transaction costs. The marginal cost liability rule reduces transaction costs still further because it is a reasonable starting point for any negotiation. Donald Wittman. “Ex ante vs. ex post”. In: Parisi, Francesco (ed) (2017). The Oxford Handbook of Law and Economics. Vol 1: Methodology and Concepts. NY: Oxford University._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Wittman, Donald Parisi I Francesco Parisi (Ed) The Oxford Handbook of Law and Economics: Volume 1: Methodology and Concepts New York 2017 |
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