Zurück zum Heft
Cover von: Cost-of-Completion versus Diminution-of-Value Damages for Deliberate Breach: An Economic Analysis
Abraham L. Wickelgren

Cost-of-Completion versus Diminution-of-Value Damages for Deliberate Breach: An Economic Analysis

Rubrik: Articles
Jahrgang 173 (2017) / Heft 1, S. 4-17 (14)
Publiziert 09.07.2018
DOI 10.1628/093245616X14743741664593
Veröffentlicht auf Englisch.
inkl. gesetzl. MwSt.
  • Artikel PDF
  • lieferbar
  • 10.1628/093245616X14743741664593
Aufgrund einer Systemumstellung kann es vorübergehend u.a. zu Zugriffsproblemen kommen. Wir arbeiten mit Hochdruck an einer Lösung. Wir bitten um Entschuldigung für die Umstände.
Beschreibung
Whether to measure expectation damages by the cost of completing the contract or the buyer's loss in value is a central, unresolved issue in contract law. This paper analyzes the issue assuming that the buyer places unobservable, idiosyncratic value on performance. While cost of completion deters efficient breach, diminution of value induces inefficient breach. The latter is more severe the more likely is large idiosyncratic value. Cost of completion also tends to be superior if the event (low market value/high cost) leading to the breach is very likely, because then the existence of the contract itself indicates substantial idiosyncratic value.