“In this talk Dr Flume will suggest a new way to understand the foundations of pecuniary damages in the case of breach of contract by connecting contract law with basic capital market economics. He argues that the amount necessary to compensate the aggrieved is equal to the hedge effected by locking in the price with respect to the market value at the time of the breach. Payoff measurements used for linear financial products prove to be very helpful in the field of contract law. He proposes that the value of a positive payoff measure of linear derivatives is tantamount to pecuniary damages …” (more)
[Janwillem (Pim) Oosterhuis, M-EPLI Blog, 16 September]
First posted 2015-09-16 09:47:46
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