Efficient Contract Remedies And the European Unification
This paper applies theoretical results that are derived from financial-economic principles to the issue of efficient contract remedies in view of the European Unification. Common Law favors the ‘expectation damages’ remedy, according to which a party who is aggrieved by a breach of contract expects an ex-post damages award, while this paper demonstrates that if the subject of the contract is traded continuously with observable values, an alternative remedy is equally efficient and just. The alternative remedy is rationalized on an ex-ante basis, and thus, courts intervention in the event of a breach of contract may not be essential. The EU aims to establish a “uniform commercial code superior to all national law.” This goal reflects current cultural differences and lacks of homogeneity, such as expectations and risk preferences across EU Member States. Lacks of homogeneity, can not, however, invalidate the above conclusion, as long as prices are continuously traded and a ‘single price’ regime prevails. Accordingly, this paper predicts that since price differentials across Member States are likely to disappear faster than other non-homogeneous factors, the Court of Justice will show a tendency to rule, utilizing the rationale underlying the ‘ex-ante regime,’ and perhaps, to overturn country-specific rulings by National Courts, which favor the ‘expectation damages regime.’
The Costs of Freely Granting Specific Performance
Parties external to the contract formulate and enforce contract law; therefore, the law necessarily has an objective cast. To devise workable rules, these external observers must avoid reliance on detailed knowledge of the thoughts and motivations of the contracting parties. Nevertheless, the ultimate subject of contract law is an agreement that, in many important respects, is essentially subjective. Often only the parties can fully appreciate the needs and desires that led to the contract or fully understand the meaning of what transpired in its negotiation. Consequently, tension exists between the subjective nature of the exchange process and the law givers' need to rely on objective criteria to evaluate that process. Decades ago, contract law cases and commentary provided a forum for the debate between the subjectivist and objectivist schools.' Inspired by Justice Holmes,2 the objectivists taught that the subjective intention of the parties is irrelevant to questions of contract formation and interpretation. Neither an objective nor subjective theory, however, totally explains the case law3 concerning these issues. The ten-
Career Choice Inclination of the College Graduates——under the Analytic Framework on the Basis of LMS Theory
Employment difficulty of college graduates has become a social problem in China today.The research group has found that college graduates have a strong inclination in career choice considering units and regions.In terms of China's manpower market and the segmented labor market theory,it is found that their inclination is caused by the great income gap of different regions,the high cost of job transfer,and the sharp differences in social welfare.It is thus obvious that solution to the problem lies with the gradual breakdown of the institutional segment of labor market.