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Full-Text Articles in Law

An Information Theory Of Willful Breach, Oren Bar-Gill, Omri Ben-Shahar Jun 2009

An Information Theory Of Willful Breach, Oren Bar-Gill, Omri Ben-Shahar

Michigan Law Review

Should willful breach be sanctioned more severely than inadvertent breach? Strikingly, there is sharp disagreement on this matter within American legal doctrine, in legal theory, and in comparative law. Within law-and-economics, the standard answer is "no "-breach should be subject to strict liability. Fault should not raise the magnitude of liability in the same way that no fault does not immune the breaching party from liability. In this paper, we develop an alternative law-and-economics account, which justifies supercompensatory damages for willful breach. Willful breach, we argue, reveals information about the "true nature" of the breaching party-that he is more likely …


In (Partial) Defense Of Strict Liability In Contract, Robert E. Scott Jun 2009

In (Partial) Defense Of Strict Liability In Contract, Robert E. Scott

Michigan Law Review

Many scholars believe that notions of fault should and do pervade contract doctrine. Notwithstanding the normative and positive arguments in favor of a fault-based analysis of particular contract doctrines, I argue that contract liability is strict liability at its core. This core regime is based on two key prongs: (1) the promisor is liable to the promisee for breach, and that liability is unaffected by the promisor's exercise of due care or failure to take efficient precautions; and (2) the promisor's liability is unaffected by the fact that the promisee, prior to the breach, has failed to take cost-effective precautions …


A Comparative Fault Defense In Contract Law, Ariel Porat Jun 2009

A Comparative Fault Defense In Contract Law, Ariel Porat

Michigan Law Review

This Article calls for the recognition of a comparative fault defense in contract law. Part I sets the framework for this defense and suggests the situations in which it should apply. These situations are sorted under two headings: cases of noncooperation and cases of overreliance. Part II unfolds the main argument for recognizing the defense and recommends applying the defense only in cases where cooperation or avoidance of overreliance is low cost.


The Role Of Fault In Contract Law: Unconscionability, Unexpected Circumstances, Interpretation, Mistake, And Nonperformance, Melvin Aron Eisenberg Jun 2009

The Role Of Fault In Contract Law: Unconscionability, Unexpected Circumstances, Interpretation, Mistake, And Nonperformance, Melvin Aron Eisenberg

Michigan Law Review

It is often asserted that contract law is based on strict liability, not fault. This assertion is incorrect. Fault is a basic building block of contract law, and pervades the field. Some areas of contract law, such as unconscionability, are largely fault based. Other areas, such as interpretation, include sectors that are fault based in significant part. Still other areas, such as liability for nonperformance, superficially appear to rest on strict liability, but actually rest in significant part on the fault of breaking a promise without sufficient excuse. Contract law discriminates between two types of fault: the violation of strong …


Fault In Contract Law, Eric A. Posner Jun 2009

Fault In Contract Law, Eric A. Posner

Michigan Law Review

A promisor is strictly liable for breaching a contract, according to the standard account. However, a negligence-based system of contract law can be given an economic interpretation, and this Article shows that such a system is in some respects more attractive than the strict-liability system. This may explain why, as a brief discussion of cases shows, negligence ideas continue to play a role in contract decisions.


The Fault Principle As The Chameleon Of Contract Law: A Market Function Approach, Stefan Grundmann Jun 2009

The Fault Principle As The Chameleon Of Contract Law: A Market Function Approach, Stefan Grundmann

Michigan Law Review

This Article begins with a comparative law survey showing that all legal systems do not opt exclusively for fault liability or strict liability in contract law, but often adopt a more nuanced approach. This approach includes intermediate solutions such as reversing the burden of proof, using a market ("objective") standard of care, distinguishing between different types of contracts, and providing a "second chance" to breaching parties. Taking this starting point seriously and arguing that it is highly unlikely that all legal systems err, this Article argues that the core question is how and when each liability regime should prevail or …


Foreword: Fault In American Contract Law, Omri Ben-Shahar, Ariel Porat Jun 2009

Foreword: Fault In American Contract Law, Omri Ben-Shahar, Ariel Porat

Michigan Law Review

The basic rule of liability in tort law is fault. The basic rule of liability in contract law is no fault. This is perhaps one of the most striking divides within private law, the most important difference between the law of voluntary and nonvoluntary obligations. It is this fault line (speaking equivocally) that the present Symposium explores. Is it a real divide-two opposite branches of liability within private law-or is it merely a rhetorical myth? How can it be justified? As law-and-economics scholars, this fault/no-fault divide between contract and tort is all the more puzzling. In law and economics, legal …


The Fault That Lies Within Our Contract Law, George M. Cohen Jun 2009

The Fault That Lies Within Our Contract Law, George M. Cohen

Michigan Law Review

Scholars and courts typically describe and defend American contract law as a system of strict liability, or liability without fault. Strict liability generally means that the reason for nonperformance does not matter in determining whether a contracting party breached. Strict liability also permeates the doctrines of contract damages, under which the reason for the breach does not matter in determining the measure of damages, and the doctrines of contract formation, under which the reason for failing to contract does not matter In my Article, I take issue with the strict liability paradigm, as I have in my prior work on …


Fault At The Contract-Tort Interface, Roy Kreitner Jun 2009

Fault At The Contract-Tort Interface, Roy Kreitner

Michigan Law Review

The formative period in the history of contract and tort (in the second half of the nineteenth century) may be characterized by the cleavage of contract and tort around the concept of fault: tort modernized by moving from strict liability to a regime of "no liability without fault," while contract moved toward strict liability. The opposing attitudes toward fault are puzzling at first glance. Nineteenth-century scholars of private law offered explanations for the opposition, reasoning that alternative ideas about fault account for the different character of state involvement in enforcing private law rights: tort law governs liabilities imposed by law …


The Many Faces Of Fault In Contract Law: Or How To Do Economics Right, Without Really Trying, Richard A. Epstein Jan 2009

The Many Faces Of Fault In Contract Law: Or How To Do Economics Right, Without Really Trying, Richard A. Epstein

Michigan Law Review

Modern law often rests on the assumption that a uniform cost-benefit formula is the proper way to determine fault in ordinary contract disputes. This Article disputes that vision by defending the view that different standards of fault are appropriate in different contexts. The central distinction is one that holds parties in gratuitous transactions only to the standard of care that they bring to their own affairs, while insisting on the higher objective standard of ordinary care in commercial transactions. That bifurcation leads to efficient searches. Persons who hold themselves out in particular lines of business in effect warrant their ability …


Partially Odious Debts?, Omri Ben-Shahar, Mitu Gulati Jan 2007

Partially Odious Debts?, Omri Ben-Shahar, Mitu Gulati

Articles

The despotic ruler of a poor nation borrows extensively from foreign creditors. He spends some of those funds on building statues of himself, others on buying arms for his brutal secret police, and he places the remainder in his personal bank accounts in Switzerland. The longer the despot stays in power, the poorer the nation becomes. Although the secret police are able to keep prodemocracy protests subdued by force for many years, eventually there is a popular revolt. The despot flees the scene with a few billion dollars of his illgotten gains. The populist regime that replaces the despot now …


To Err Is Human, Keith A. Rowley May 2006

To Err Is Human, Keith A. Rowley

Michigan Law Review

There are many kinds of mistakes. One kind-a rational, well-intended act or decision resulting in unanticipated, negative consequences-was the focus of Allan Farnsworth's previous foray into the realm of legal angst. Another kind-an act or decision prompted by an inaccurate, incomplete, or uninformed mental state and resulting in unanticipated, negative consequences- is the subject of the present book. Like its predecessor, Alleviating Mistakes does not confine itself to contract law, Farnsworth's home turf; it explores criminal, tort, restitution, and other areas of substantive law as well. As such, it paints on too large a canvas to capture its entirety in …


Private Insurance As A Solution To The Driver-Guest Dilemm, Harvey R. Friedman Jan 1964

Private Insurance As A Solution To The Driver-Guest Dilemm, Harvey R. Friedman

Michigan Law Review

The duty of the driver of an automobile to his nonpaying passenger, and liability arising from the breach of that duty, has long presented a troublesome area of litigation for the courts and the parties involved. Application of standards unsuited for the peculiar risks of automotive transportation has produced inadequate compensation in some cases and excessive recoveries in others. Meanwhile, trial calendars are overcrowded with personal injury litigation, and insurance companies must bear the awards of sympathetic juries and those resulting from collusion between passenger and driver. The over-all expense of this method of determination of liability, far too little …


Soviet Tort Law: The New Principles Annotated, Whitmore Gray Jan 1964

Soviet Tort Law: The New Principles Annotated, Whitmore Gray

Articles

In 1961, the federal legislature, the USSR Supreme Soviet, finally adopted a skeleton code of fundamental principles of civil law.10 This recodification, which incorporates 40 years of case law and doctrinal development as well as some major innovations, will be the basis for individual civil codes to be adopted in each of the 15 union republics. While there may be some slight modifications, and certainly some variety in the degree of additional detail included in the individual codes by each republic,11 these Principles present already a fairly comprehensive picture of the shape of the future law. They are about as …


The Casual Relation Issue In Negligence Law, Leon Green Mar 1962

The Casual Relation Issue In Negligence Law, Leon Green

Michigan Law Review

Two significant legal studies of "Causation"-one English, one American-have been recently published. The English book brings to the subject more scholarly learning and a more comprehensive examination of its literature than any other book that has been written. The authors are devoted disciples of causation principles and make a stout defense of the causation concept as the structural core of negligence law. They examine the philosophical, common sense and semantic backgrounds of causal concepts as the basis of legal liability, find that they have merit, and launch extended, and sometimes devastating, attack upon theories that question their adequacy, though in …


Equity-Financial Liability To Comply With A Decree-Imprisonment For Debt, Paul M.D. Harrison Apr 1950

Equity-Financial Liability To Comply With A Decree-Imprisonment For Debt, Paul M.D. Harrison

Michigan Law Review

Testator provided that a charge amounting to $16,000 was to be made on certain devised land and that a $5,000 legacy was to be paid to plaintiff educational institution from this sum. Defendant executors reported to the court, in 1921, that the charge had been collected and that the $5,000 legacy for plaintiff had been received. The court ordered them to hold the money in trust until plaintiff might qualify to take it. Actually, as shown by the executor's final report of 1941, no part of the $5,000 had been collected and all the money in the estate had been …


Conflict Of Laws-Domicile Of Child Living With Mother, Charles E. Becraft S.Ed. Jun 1949

Conflict Of Laws-Domicile Of Child Living With Mother, Charles E. Becraft S.Ed.

Michigan Law Review

Plaintiff and defendant, husband and wife, were domiciled in New York. Because of temporary unemployment, plaintiff took his wife and minor child to Connecticut. He later returned to New York and resided in the apartment the family had formerly occupied. The wife and child did not return to New York, and the court found that she had at all times intended to remain in Connecticut and establish a domicile there. Plaintiff at all times intended to make New York his permanent residence. When defendant would not return to New York, plaintiff brought action for separation in a New York court, …


Real Property-Unenforceability Of Restrictive Covenants-Methods Of Protecting Plan, Charles B. Blackmar S.Ed. Mar 1948

Real Property-Unenforceability Of Restrictive Covenants-Methods Of Protecting Plan, Charles B. Blackmar S.Ed.

Michigan Law Review

The restrictive covenant is a device by which property owners can gain some degree of assurance that neighboring property will not be used in an objectionable way. The restrictions are usually reciprocal and negative, common examples being building restrictions, regulations as to use for business, and prohibitions against occupancy by certain races. By private agreement much greater protection can be had than is afforded by zoning ordinances and nuisance doctrines.


Torts-The Duty To Rescue-"Am I My Brother's Keeper? Dec 1942

Torts-The Duty To Rescue-"Am I My Brother's Keeper?

Michigan Law Review

A recent case, decided by the Supreme Court of Indiana, and commented upon elsewhere in this issue, involved the interesting question as to the existence of a duty to go to the aid of a person who is in helpless peril through no initial fault on the part of the defendant.


Any More Light On Haddock V. Haddock? The Problem Of Domicil In Divorce, Harold Wright Holt Mar 1941

Any More Light On Haddock V. Haddock? The Problem Of Domicil In Divorce, Harold Wright Holt

Michigan Law Review

AT first glance it seems a work of foolhardiness or of supererogation to embark upon a rediscussion of any problems arising from Haddock v. Haddock. True, the decision of the majority of the Supreme Court in that case has not won wholehearted support from the bench or legal profession. True it is, also, that collusive divorces still flourish. These considerations alone might, perhaps, lead the reader to concede that it would not be unfruitful to speculate upon an eventual modification of some of the principles which the Court in that case approved. If, however, further justification is demanded of …


Trusts - Tort Liability Of Trustee In His Representative Capacity, Reid J. Hatfield Feb 1941

Trusts - Tort Liability Of Trustee In His Representative Capacity, Reid J. Hatfield

Michigan Law Review

Plaintiff brought suit to recover damages for injuries allegedly sustained because of the unsafe condition of a hotel building owned and operated by the defendant trustee. The trustee was an insolvent bank and trust company in the hands of the state superintendent of banks, who was also joined as defendant. The prayer was for a "judgment against the defendants in their fiduciary capacity toward the trust." On appeal of the lower court's judgment sustaining defendants' demurrer, held, that the trustee could be sued in his representative capacity. Carey v. Squire, 63 Ohio App. 476, 27 N. E. (2d) …


Attack On Decrees Of Divorce, Albert C. Jacobs Apr 1936

Attack On Decrees Of Divorce, Albert C. Jacobs

Michigan Law Review

This paper deals with attacks on decrees of divorce. The attack may arise in the state of the divorce or elsewhere. F-1 is used to designate the state in which the divorce was granted; F-2 a state other than that in which the decree in' question was rendered. The attack in F-1 may be on purely local or non-jurisdictional grounds, such as fraud, collusion, duress or perjury, or upon the ground that the proper jurisdictional requirements were lacking. The attack in F-2 will generally be on jurisdictional grounds, though in certain situations a decree has been impeached for non-jurisdictional factors. …


Torts -Absolute Liability-"Rylands V. Fletcher" Jun 1933

Torts -Absolute Liability-"Rylands V. Fletcher"

Michigan Law Review

The defendant, owner of an 11 acre plot, licensed nomadic caravan dwellers to come on the field and live there. Approximately two to three hundred people were on the land. Some of the group deposited human excrement on the adjoining lands, allowed their horses to trespass upon and foul neighboring lands, were often noisy in returning to the land, and frequently trespassed upon the neighboring land in going to or leaving the plot. Held, in an action for public nuisance, that the defendant was bound to prevent the occupants of his land from committing the acts in question. An …


Negligence-Res Ipsa Loquitur-Presumption Of Management From Ownership-Unattended Automobile Dec 1930

Negligence-Res Ipsa Loquitur-Presumption Of Management From Ownership-Unattended Automobile

Michigan Law Review

After the sound of a crash, the defendant's motortruck was found on the plaintiff's porch. Held, the doctrine of res ipsa loquitur was applicable.


Liability Without Fault, John B. Waite Jan 1920

Liability Without Fault, John B. Waite

Articles

In Ives v. South Buffalo Ry. Co., 201 N. Y. 271, appeared, as a basis for the decision, the statement that "When our Constitutions were adopted, it was the law of the land that no man who was without fault or negligence could be held liable in damages for injuries sustained by another. That is still the law." Mr. Justice McKenna has recently voiced the same idea. In his dissenting opinion in Arizona Copper Co. v. Hammer, 39 Sup. Ct. Rep. 553, he contends that the Workmen's Compensation Act of Arizona is unconstitutional, because, "It seems to me to be …