The consequences of a purely economic approach to breach of contract can result in
A)the decision by a party to ensure that all contractual obligations are met.
B)the decision by a party not to perform a contractual obligation.
C)the decision by a party to breach the contract.
D)the decision by a party to actually weigh the consequences of breach against its reward.
E)the decision by a party to merely perform a contractual obligation.

Question

Quizplus · Accepted Answer

When parties approach breach of contract purely from an economic perspective, they may weigh the potential consequences of breach against the reward of not performing their contractual obligations. This can lead them to intentionally breach the contract if they believe that the potential benefits outweigh the costs of breach.

The Consequences of a Purely Economic Approach to Breach of Contract