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Full-Text Articles in Law and Economics
The Lost Volume Seller, R.I.P., Victor P. Goldberg
The Lost Volume Seller, R.I.P., Victor P. Goldberg
Faculty Scholarship
If the buyer breaches a sales contract, and if the seller can be characterized as a lost volume seller, courts and commentators have argued that the seller should be made whole by compensation for its lost profits. This paper argues that framing the problem in this way leads to an absurd result. The buyer has a termination option and the remedy should be the implicit option price. The lost profit remedy sets a price on that option, a price that bears no relation to reality. Examination of the case law suggests three conclusions: (a) the remedy often sets an excessive …
Foreword: The Economics Of Contract Law, Michael J. Meurer
Foreword: The Economics Of Contract Law, Michael J. Meurer
Faculty Scholarship
The articles in this issue are samples from the burgeoning economics of contract law. They demonstrate that lawyers a can bring economic models to bear on quite specific issues of co offer normative guidance regarding the structure of efficient The success of the symposium and the quality of the articles of this field will continue to flourish. The articles cover a fairly narrow range of contract law issues. The second through sixth articles all address topics involving remedies. Two of these loo at the optimal remedies to be provided by contract law, and the other three are concerned with remedies …