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Author Question: When should parties be allowed to breach a contract?[br][br][b][color=#FA1639]Question ... (Read 32 times)

vicky

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on: Jun 30, 2018
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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Reply #1 on: Jun 30, 2018
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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