Skip to main content Accessibility help
×
Hostname: page-component-77c89778f8-5wvtr Total loading time: 0 Render date: 2024-07-22T18:51:37.043Z Has data issue: false hasContentIssue false

17 - Why Breach of Contract May Not Be Immoral Given the Incompleteness of Contracts

Published online by Cambridge University Press:  10 November 2010

Omri Ben-Shahar
Affiliation:
University of Chicago
Ariel Porat
Affiliation:
Tel-Aviv University
Get access

Summary

There is a widely held view that breach of contract is immoral. In this chapter I suggest that breach may often be seen as moral, once one appreciates that contracts are incompletely detailed agreements and that breach may be committed in problematic contingencies that were not explicitly addressed by the governing contracts. In other words, it is a mistake generally to treat a breach as a violation of a promise that was intended to cover the particular contingency that eventuated.

There is a widely held view that breach of contract is immoral. Yet it is manifest that legal systems ordinarily do allow breach – the law usually permits breach if the offending party pays damages – and it is a commonplace that breach occurs. Thus, a tension exists between the felt sense that wrong has been done when contracts are broken and the actual operation of the law. This opposition has long been remarked by commentators.

Recently I wrote on the question of when breach of contract should be considered immoral. My primary point was that breach may often be seen as moral once one appreciates that contracts are incompletely detailed agreements and that breach may be committed in problematic contingencies that were not explicitly addressed by the governing contracts. In other words, because of contractual incompleteness, it is a mistake generally to treat a breach as a violation of a promise that was intended to cover the particular contingency that eventuated.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Shavell, Steven, Is Breach of Contract Immoral?, 56 Emory L.J.439 (2006)Google Scholar
Shavell, Steven, Damage Measures for Breach of Contract, 11 Bell J. Econ.466, 466–9 (1980)CrossRefGoogle Scholar
Shiffrin, Seana, Could Breach of Contract Be Immoral?, 107 Mich. L. Rev.1551 (2009)Google Scholar
Shiffrin, Seana Valentine, The Divergence of Contract and Promise, 120 Harv. L. Rev.708 (2007)Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×