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Pre-Contractual Reliance

Lucian Bebchuk (bebchuk@law.harvard.edu) and O. Ben-Shahar

Working Papers from Tel Aviv

Abstract: During contarctual negotiations, but before entering a contarct, parties might make reliance expenditures. Such expenditures would increase the surplus should a contarct be made, but would wasted if not. This paper analyses parties' decisions to invest in pre-contractual reliance under alternative legal regime.

Keywords: CONTRACTS; DECISION MAKING (search for similar items in EconPapers)
JEL-codes: D80 D81 K12 (search for similar items in EconPapers)
Pages: 42 pages
Date: 1996
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