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Full-Text Articles in Legal Remedies
The Efficiency Of A Disgorgement As A Remedy For Breach Of Contract, Sidney Delong
The Efficiency Of A Disgorgement As A Remedy For Breach Of Contract, Sidney Delong
Faculty Articles
Economic analysis suggests that to give a contract promise a general remedy that would require a breaching promisor to disgorge any benefit of breach would hinder the efficient post-contractual reallocation of performance resources. This article explores certain situations in which disgorgement appears to be an efficient remedy for breach of contract, including cases in which the breaching party refuses to pay contract damages at the time of breach. A rule permitting promisees to recover as "prejudgment interest" the breacher's benefit from withholding payment of damages would, in theory, be efficient in allocating the risk of the breacher's credit worthiness to …