The law and economics of good faith in the civil law of contract

Good faith plays a central role in most legal systems, yet appears to be an intractable concept. This article proposes to analyse it economically as the absence of opportunism in circumstances which lend themselves to it. One of the objectives underlying the law of contract on an economic view is to curtail opportunism. In spelling out what this means, the paper proposes a three-step test: bad faith is present where a substantial informational or other asymmetry exists between the parties, which one of them turns into an undue advantage, considered against the gains both parties could normally expect to realise through the contract, and where loss to the disadvantaged party is so serious as to provoke recourse to expensive self-protection, which significantly raises transactions costs in the market. The three-step test is then used to analyse a set of recent decisions in international commercial transactions and three concepts derived from good faith: fraud, warranty for latent defects and lesion.

On Stackelberg Equilibria with Differentiated Products: the Critical Role of the Strategy Space.

Nous Considerons Dans Cet Article un Modele de Duopole Avec Produits Differencies; Nous Montrons Que le Caractere Substituts Vs Complements de Ces Produits Est un Facteur Important Dans la Determination du Mode de Concurrence Strategique (Cournot-Bertrand, Nash Mixte, Stackelberg; En Prix Ou Quantites) Que L'on Est Susceptible D'observer. Si les Produits Sont Substituts (Complements), la Concurrence Sera du Type Cournot (Bertrand) Plutot Que du Type Nash Mixte a Moins Qu'une Firme Puisse Affirmer Son Leadership et Forcer une Concurrence a la Stackelberg Mais Quel Soit le Role Tenu Par une Firme, Il Sera Preferable Pour Elle Que la Concurrence S'exprime En Quantite (Prix). Par Ailleurs, la Concurrence a la Bertrand Est Toujours la Meilleure du Point de Vue des Consommateurs et du Point de Vue de L'efficacite Sociale, et Ce, Que les Produits Soient Susbtituts Ou Complements.

The Transformation Problem : an Aleternative Solution with an Identical Aggregate Profit Rate in the Labor value and the Monetary Space.

The aim of this paper is to demonstrate that, even if Marx's solution to the transformation problem can be modified, his basic conclusions remain valid. the proposed alternative solution which is presented hare is based on the constraint of a common general profit rate in both spaces and a money wage level which will be determined simultaneously with prices.

The Law and Economics of the Civil Law of Mandate

Présentation à la Annual Law & Economics Conference 2007, Université de Bologne.

The Social Power of Bodin's 'Sovereignty' and International Law

The word ‘sovereignty’ provides a forceful example of the social power of language as an organic instrument playing a leading role in the continuous and continuing process of creating and transforming human reality. The paper examines a pivotal episode in the history of the word ‘sovereignty’ — its formal introduction in the 16th century by Jean Bodin in his Six Livres de la Republique. It focuses on the social effects ‘sovereignty’ has had on the shared consciousness of humanity, including that of the international community. The proposed metalogical inquiry adopts a method that draws from the hermeneutic school of historical knowledge. The argument is that Bodin used ‘sovereignty’ for the purpose of attributing to the ruler (the French king) supreme power in the hierarchical organisational structure of society. This idea of a pyramid of authority is found in different elements of the discourse in Six Livres de la Republique, which is examined in the immediate context of Bodin’s personal background as well as the extended social, political and intellectual context of 16th century France. The conclusion shows that Bodin’s work was the first seminal step in the development of contemporary ideas of ‘internal sovereignty’ and ‘external sovereignty’. It is thus part of the history of the true power that the word at hand has exercised in framing the international state system and hence the international legal system.

Two models of constitutionalism and the legitimacy of law : Dicey or Marshall ?

The article was first published in the Oxford University Commonwealth Law Journal.

General Legitimacy of Judicial Review and the Fundamental Basis of Constitutional Law

Four questions dominate normative contemporary constitutional theroy: What is the purpose of a constitution? What makes a constitution legitimate? What kinds of arguments are legitimate within the process of constitutional interpretation? What can make judicial review of legislation legitimate in principle? The main purpose of this text is to provide one general answer to the last question. The secondary purpose is to show how this answer may bear upon our understanding of the fundamental basis of constitutional law. These two purposes should suggest particular answers to the first three questions.

Security and Securities in English Commercial Law

Paul Latimer, Associate Professor, Department of Business Law and Taxation. Faculty of Business and Economics, Monash University. Présentation dans le cadre du cycle de conférences organisé par le CRDP intitulé « Le droit à la sécurité ... la sécurité par le droit ».