Author Question: When should parties be allowed to breach a contract?[br][br][b][color=#FA1639]Question ... (Read 58 times)

vicky

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When should parties be allowed to breach a contract?

Question 2

Negative externalities lead to over supply in a market.
  Indicate whether the statement is true or false



lou

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Answer to Question 1

If the party breaking the contract earns a higher return, even after paying for liquidated damages, compared to the return earned from keeping the contract, they should be allowed to breach the contract.

Answer to Question 2

True



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