Interaction of Specific Performance and Cumulativeness of Termination of Contract and Contractual Remedies: Efficiency Examination in Contractual Sanctions Regime

Document Type : Research Article

Authors

1 Associate Professor, Department of Private and Islamic Law, Kharazmi University of Tehran, Tehran, Iran

2 Associate Professor, Department of Private and Islamic Law, University of Tehran, Tehran, Iran

3 Ph.D. Student in Private Law, Kharazmi University of Tehran, Tehran, Iran

Abstract

Under cumulativeness of contractual sanctions, if such sanctions integrate with each other to compensate for the damages incurred by obligee, legal provisions shall allow them to be executed simultaneously. However, according to the specific performance, obligor is bound to execute the obligation and the initial cumulativeness of termination of contracts and compensation is not possible. Therefore, there is a relationship between the primacy of specific performance and initial cumulativeness of sanctions (termination of contract and compensation)  so, by applying one of them, the other one will not be exercised, whereas the mentioned legal institutions have special efficiency and from the viewpoint of the economic analysis of law, legislators should provide for compatibility between them. Thus, in this article the interaction of primacy of specific performance to contract termination with the cumulative contractual sanctions is examined with benefiting from the economic analysis of law including the efficiency, cost-benefit, welfare, game theory.  Also the solution regarding the constructive relationship between the mentioned legal institutions from the economic point of view will be proposed to legislator. 

Keywords

References

  1. انصاری، مهدی (1393). تحلیل اقتصادی حقوق قراردادها. چاپ دوم، تهران: انتشارات جاودانه‌ـ‌جنگل.
  2. بادینی، حسن (1382). مبانی فلسفی نگرش اقتصادی به حقوق. مجلۀ دانشکدۀ حقوق و علوم سیاسی، شمارۀ 62، صفحات 91ـ135.
  3. دادگر، یدالله (1385). پیش‌درآمدی بر سنتز حقوق و اقتصاد. مجلۀ تحقیقات حقوقی دانشگاه شهید بهشتی، شمارۀ 43، صفحات 163ـ206.
  4. سبحانی‌تبریزی، جعفر (1423 ه‍.ق). دراسات موجزه فی‌الخیارات والشروط. چاپ نخست، قم: المرکز العالمی للدراسات الإسلامیه.
  5. موسوی‌خمینی، روح‌الله (1421 ه‍.ق). کتاب‌البیع. جلد پنجم، چاپ نخست، تهران: مؤسسۀ تنظیم و نشر آثار امام خمینی (ره).
    1. Brooks, Richard R.W. and Stremitzer, Alexander (2010). Remedies On and Off Contract, the Yale Law Journal, p 690-727.
    2. Coleman, Jules L. (1980). Efficiency, Utility, and Wealth Maximization, Hofster Law Review, Vol. 8, P 509, 551.
    3. Cooter, Robert and Ulen, Thomas (2012). Law and Economics, 6thed, the United State of America: Library of Congress Cataloging in _ Publication Data.
    4. Drèze, Jean and Stern, Nicholas. (1987). The Theory of Cost – Benefit Analysis, Handbook of Public Economics, North – Holland, Elsevier Science Publisher B. V, Chapter 14.

10. Frey, Martin A. (2000). An Introduction to the Law of Contract, 3thed,the United States of America: Thomson Delmar Learning.

11. Eisenberg, M. A. (2005). Actual and Virtual Specific Performance, the Theory of Efficient Breach, and the Indifference Principle in Contract Law, California Law Review, Vol. 93, N0. 4, p 975-1050.

12. Eisenberg, Theodore and Miller, Geoffery P. (2013). Damages Versus Specific Performance:Lessons form Commercial Contracts, New York University School of Law, p 1-60.

13. Goldberg, Victor P. (1993). Reading in the Economics of Contract Law, New York: Cambridge University Press.

14. Hermalin, Benjamin E., Katz, Avery W. and Richard Craswell (2006). Chapter on the Law & Economocs of Contracts, Forthcoming in the Handbook of Law & Economics.

15. Miceli, T.J. (1997). Economics of the Law: Torts, Contracts, Property, Litigation, New York: Oxford University Press.

  1. 16.  Kronman, A. T. (1978), Specific Performance, Yale Law School Legal Scholarship Repository, Faculty Scholarship Series, p 351-382.

17. Picker, Randl C. (1994). An Introduction to Game Theory and the Law, Chicago Working Paper in Law & Economics, P 1-22.

18. Polinsk, A. Mitchell and Shavell, Steven (2005). Economic Analysis of Law, 2thed, the New Palgrave Dictionary of Economics.

  1. 19.   Rasmusen, Eric, Games and Information: An Introduction to Game Theory, 4thed.

20. Ribeiro, Rober. (2002). Damages and Other Remedies for Breach of Commercial Contracts, Great Britain, Thorogood.

21. Salanié, Bernard. (2005). the Economics of Contract, 2thed, the MIT Press. Cambridge, Massachusetts, London, England.

22. Scalise Jr., Ronald J. (2007). Why No “Efficient Breach” in Civil Law?: A Comparative Asssessment of the Doctrine of Efficient Breach of Contract”, The American Journal of Comparative Law, Vol. 55, p 721- 766.

  1. 23.   Schwartz, A. (1979), the Case for Specific Performance, Yale Law School Legal Scholarship Repository, Faculty Scholarship Series, p 271-306.

24. Shavell, Steven. (2003). Economic Analysis of Contract Law (Part of Foundation of Economic Analysis of Law), Cambrige.

25. Shavell, Steven. (2003) Welfare Ecomics, Morality and the Law, Chater 2, Welfare Economics and Morality, Harvard Law School.

26. Treitel, G. H. (2003), the Law of Contract, 11thed, England: Thomson Sweet & Maxwell.

27. Ulen, Thomas S. A Nobel Prize in Legal Science: Theory, Empirical, Empirical Work, And the Scientific Method in the Study of Law, Available at: http://papers.ssrn.com/.

28. Varadarajan, Deepa. (2001). Tortious Interference and the Law of Contract: The Case for Specific Performance Revisited, The Yale University of Law, New York, Vol. 111, p 735-760.

29. Wacks, Raymond. (2006). Philosophy of Law: A Very Short Introduction, Oxford University Press, New York.

30. Wittman, Donald. (2006). Economic Foundations of Law and Organization, Cambridge University Press, New York.

31. Zerbe Jr, Richard O. (2001). Economic Efficiency in Law and Economics, Edward Elgar Publishing Limited, Cheltenham UK. Northampton, MA. USA

Private Law
Volume 14, Issue 2
Autumn & Winter
October 2017
Pages 179-198

Files

Share

How to cite

Statistics