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contract law, unforseen contigencies - Coggle Diagram
contract law
functions
promote and facilitate exchange
lower transaction costs
ensure enforcement
redress market failures
why contracts
volountary
economic benefits
voluntary exchanges
from lower to higher valuing users
efficient
posner
wealth maximization
difference in subjective value
pareto
coase theorem
invouluntary
mental incapacity
needs to be proven
why contract law
transaction costs
pathologies
coercion
prevention of monopoly power
mistake
mutual
unilateral
duty to disclose valuable information?
socially valuable (productive)
no
needs to incentives the search
not socially valuable
yes
information costs
needs to disincentives the search
exception
casually acquired
1 more item...
unfavorable information
yes
uncoscionability
grossly unfair to one of the parties
breach of promise
defeasibility
contract validity
meeting of the minds
offer
acceptance
consideration
efficient breach
+remedies
pareto efficient
goal
performance efficient
incentivise it
breach efficient
incentivise it
types
expectation damages
leave the promisee indifferent between performance and breach
reliance damages
specific performance
party-designated remedies
unforseen contigencies
cost of performance > benefits of performance
increased costs
decreased value