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- W2509092016 abstract "Hadley v Baxendale remoteness is generally regarded favourably in the law andeconomics literature. Orthodox theory views remoteness as an efficient rule, although itspurported efficiency virtues vary. Most economic models portray remoteness as an informationdisclosure device which bridges information asymmetry and regulates rates of contracting,precautions against breach and even reliance by promisees. Yet the assumptions of economicmodels are denied by the content that courts attribute to the doctrine. This paper suggests thatremoteness is an inefficient rule which entails certain costs, particularly through its impact onperformance/breach decisions, but only uncertain and modest efficiency gains. It is argued thata more efficient default rule would allow full recovery of expectation damages. The paradigmchangingjudgment in The Achilleas could pave the way for such superior rule rather than addan imprecise test of remoteness to the existing Hadley rule. The paper contrasts the Englishand US solutions with functional equivalents of remoteness from Germany, France andQuebec, which come closer than the common law to the economic models’ version ofremoteness or the expectation damages rule. The analysis shows, perhaps surprisingly, that theefficiency of the common law of contract is too often taken for granted." @default.
- W2509092016 created "2016-09-16" @default.
- W2509092016 creator A5035495259 @default.
- W2509092016 date "2016-04-01" @default.
- W2509092016 modified "2023-09-24" @default.
- W2509092016 title "REMOTENESS OF DAMAGE IN CONTRACT AND ITS FUNCTIONALEQUIVALENTS: A CRITICAL ECONOMIC APPROACH" @default.
- W2509092016 hasPublicationYear "2016" @default.
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