Economics at your fingertips  

Lost Profits, Market Damages, and Specific Performance: An Economic Analysis of Buyer's Breach

Asha Sadanand

Canadian Journal of Economics, 1987, vol. 20, issue 4, 750-73

Abstract: Suppose a buyer enters into a contract with a seller and subsequently wishes not to perform. This paper examines a formal model of three standard remedies-lost profits, market damages, and specific performance-to assess how well each compensates the seller. By defin ition, specific performance compensates exactly, since effectively th e buyer must perform. The extent to which the other remedies compensa te accurately depends upon the ease with which the buyer could otherw ise resell the unwanted goods. The lost-profits remedy compensates we ll when the buyer is unable to resell and otherwise overcompensates; the opposite holds for the market-damages remedy.

Date: 1987
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... PMDAS%3E2.0.CO%3B2-R (text/html)
only available to JSTOR subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Katherine Cuff

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().

Page updated 2022-01-06
Handle: RePEc:cje:issued:v:20:y:1987:i:4:p:750-73