"Thomas F. Unke" wrote in message
news:Hw2xnF.Eun@news.online.de...
> "Peter L" writes:
>
> >
> > No I believe lower profits cause higher prices.
>
> Believing is no substitute for knowledge.
>
> Hint: keeping a contract is a basic principle of a modern
> economy. Those who think they can deliberately break a contract just
> for a quick buck extra don't cause lower prices, but add to the
> decline of the economic standards.
Actually, that's not true, at least in the US and other common law
countries. In these countries, the theory of "efficient breach" is
employed, i.e. if it is economically efficient to breach a contract, we'll
allow you to do so. That's why there are no punitive damages for breach of
contract -- damages are limited only to actual and foreseeable damages
sustained by the non-breaching party. The idea is, if you can compensate
the non-breacher AND still make a profit by breaching, we'll allow you to do
so.
>
|