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.

The Civil Law Of Contract

Cet article sera publié dans Ghent Encyclopedia of Law and Economics, Gerrit De Geest (General Editor), 2nd edition, Cheltenham, Edward Elgar, 2010.

Choice of contract maturity with applications to international and mortgage lending

Thèse numérisée par la Division de la gestion de documents et des archives de l'Université de Montréal

New Terms of Envatment

The argument against skepticism relying on content externalism, which was made famous by Hilary Putnam, has been considered inconclusive by many philosophers. However, some believe that this argument has precluded the possibility of skeptical hypotheses. These hypotheses typically are fictional scenarios where a deceptive power makes your experiences indistinguishable from those you would have if you were not in such a scenario, making most of your justified belief false. Some philosophers, such as Anthony Brueckner and Jon Altschul, have taken this problem seriously and, in response to Putnam, have developed an alternative to the argument from ignorance: the piecemeal fashion strategy. I wish to defend, contra Brueckner and Altschul, the idea that some skeptical hypotheses remain untouched by content externalism, making the piecemeal fashion strategy obsolete.

Standardization of cytokine flow cytometry assays

Affiliation: Faculté de médecine, Université de Montréal & CANVAC

The Economics Of Civil Law Contract And Of Good Faith

Prepared for the Symposium in honour of Michael J. Trebilcock, 1-2 October 2009, in Toronto