Three different issues, related to third party involvement in a contractual relationship, are examined. The first two (assignment of contractual rights/delegation of contractual duties and third-party beneficiary contracts) are examined in a unified way. After pointing to the striking similarity between beneficiary and assignment contracts, we discuss the non-simultaneous assent argument, the danger of creating open classes of beneficiaries without the intention of the contracting parties, and other problems. In a second part, we deal with the controversial issue of efficient breach due to inducement by a third party. After reviewing the literature, we briefly consider the use of liquidated damages as an instrument that is better-suited than a tort for the protection of the subjective valuation and the risk aversion of the promisee.
- economics of contract law
Available at: http://works.bepress.com/aristides_hatzis/2/