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Full-Text Articles in Law
Recent Case Developments, Jeffrey W. Stempel
Recent Case Developments, Jeffrey W. Stempel
Scholarly Works
Recent case developments in Insurance Law in the years 2000 and 2001.
Recent Case Developments, Jeffrey W. Stempel
Recent Case Developments, Jeffrey W. Stempel
Scholarly Works
Recent case developments in Insurance Law in the years 2000 and 2001.
Precontractual Reliance, Lucian A. Bebchuk, Omri Ben-Shahar
Precontractual Reliance, Lucian A. Bebchuk, Omri Ben-Shahar
Articles
During contractual negotiations, parties often make reliance expenditures that would increase the surplus should a contract be made. This paper analyzes decisions to invest in precontractual reliance under alternative legal regimes. Investments in reliance will be socially suboptimal in the absence of any precontractual liability-and will be socially excessive under strict liability for all reliance expenditures. Given the results for these polar cases, we focus on exploring how "intermediate"-liability rules could be best designed to induce efficient reliance decisions. One of our results indicates that the case for liability is shown to be stronger when a party retracts from terms …