Book contents
- Frontmatter
- Contents
- Preface
- Readings in the economics of contract law
- Part I Some preliminaries
- Part II Contract law and the least cost avoider
- 2.1 Unity in tort, contract, and property: the model of precaution
- 2.2 The mitigation principle: toward a general theory of contractual obligation (1)
- 2.3 Relational exchange, contract law, and the Boomer problem (1)
- Questions and notes on the least cost avoider
- Part III The expectation interest, the reliance interest, and consequential damages
- Part IV The lost-volume seller puzzle
- Part V Specific performance and the cost of completion
- Part VI Power, governance, and the penalty clause puzzle
- Part VII Standard forms and warranties
- Part VIII Duress, preexisting duty, and good faith modification
- Part IX Impossibility, related doctrines, and price adjustment
- Questions and notes on impossibility and price adjustment
- References
- Index of cases
- Author index
- Subject index
Questions and notes on the least cost avoider
Published online by Cambridge University Press: 10 November 2010
- Frontmatter
- Contents
- Preface
- Readings in the economics of contract law
- Part I Some preliminaries
- Part II Contract law and the least cost avoider
- 2.1 Unity in tort, contract, and property: the model of precaution
- 2.2 The mitigation principle: toward a general theory of contractual obligation (1)
- 2.3 Relational exchange, contract law, and the Boomer problem (1)
- Questions and notes on the least cost avoider
- Part III The expectation interest, the reliance interest, and consequential damages
- Part IV The lost-volume seller puzzle
- Part V Specific performance and the cost of completion
- Part VI Power, governance, and the penalty clause puzzle
- Part VII Standard forms and warranties
- Part VIII Duress, preexisting duty, and good faith modification
- Part IX Impossibility, related doctrines, and price adjustment
- Questions and notes on impossibility and price adjustment
- References
- Index of cases
- Author index
- Subject index
Summary
1. Consider again Cooter's hypothetical agreement between Xavier and Yvonne. As Yvonne's lawyer, how would you draft the contract to protect against the possibility that the store would not be ready on September 1? Remember that the greater Xavier's potential liability, the higher the original contract price must be to compensate him for bearing that risk. If your contract includes a liquidated damages clause, as Cooter suggests, what sort of damage formula would you include? Would you be willing to accept a disclaimer against consequential damages? Should Xavier's failure to perform be excused if the breach was not his fault (or for any other reasons)?
2. Suppose that one of the items Xavier needs to complete his building is the industrial air-conditioning compressor mentioned by Goetz and Scott. If the compressor is delivered late, Xavier will breach his contract with Yvonne and be liable for damages as specified in the contract you have helped draft. Should Xavier's contract with the supplier shift any or all of these damages to the supplier?
3. Suppose that the compressor manufacturer misfiled Xavier's order. As a result, he ends up installing the compressor six months late and Xavier cannot convey the shop to Yvonne until March 1.
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- Information
- Readings in the Economics of Contract Law , pp. 72 - 74Publisher: Cambridge University PressPrint publication year: 1982