(BQ) Part 2 book "Law & economics" has contents: An Economic theory of contract law, topics in the economics of contract law, an economic theory of the legal process, topics in the economics of the legal process, topics in the economics of the legal process, topics in the economics of crime and punishment. | 8 An Economic Theory of Contract Law [T]he movement of the progressive societies has hitherto been a movement from Status to Contract. HENRY MAINE, ANCIENT LAW 170 (1861) Whoever offers to another a bargain of any kind, proposes to do this: Give me that which I want, and you shall have this which you want, is the meaning of every such offer; and it is in this manner that we obtain from one another the far greater part of those good offices which we stand in need of. It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. ADAM SMITH, THE WEALTH OF NATIONS 22 (5TH ED. 1789) A promise invokes trust in my future actions, not merely in my present sincerity. CHARLES FRIED, CONTRACT AS PROMISE 11 (1981) P EOPLE CONTINUALLY MAKE promises: sales people promise happiness; lovers promise marriage; generals promise victory; and children promise to behave better. The law becomes involved when someone seeks to have a promise enforced by the state. Here are some examples: Example 1: The Rich Uncle. The rich uncle of a struggling college student learns at the graduation party that his nephew graduated with honors. Swept away by good feeling, the uncle promises the nephew a trip around the world. Later the uncle reneges on his promise. The student sues his uncle, asking the court to compel the uncle to pay for a trip around the world. Example 2: The Rusty Chevy. One neighbor offers to sell a used car to another for $1000. The buyer gives the money to the seller, and the seller gives the car keys to the buyer. To her great surprise, the buyer discovers that the keys fit the rusting Chevrolet in the backyard, not the shiny Cadillac in the driveway. The seller is equally surprised to learn that the buyer expected the Cadillac. The buyer asks the court to order the seller to turn over the Cadillac. 276 I. Bargain Theory: An Introduction to .
