Dogmatic and Political-Legal Justification for the Protection of Positive Interest in the Recovery of Damages in Case of Breach of Contract
https://doi.org/10.22394/2686-7834-2023-1-69-86
Abstract
Following L. Fuller and W. Perdue, the author tries to find a philosophical, historical and utilitarian justification for a positive interest in recovering damages due to a breached contract and, using comparative and historical methods of scientific analysis, comes to the following conclusions. The model of positive interest is not an attribute of the contract only, it attributes the protection of the subjective right of claim. The violated right can be not only a party to the contract, but also a delinquent, while the losses will reasonably be calculated according to the model of positive interest (for example, recovery of losses caused by unfair intervention in other people’s contractual relations). Such a view calls into question the practical expediency of the considered division of models for the recovery of damages, and encourages us to evaluate the object of the encroachment — whether there has been a violation of a subjective right.
Historically, the transformation of a tort into a contract in English law is marked by the ability to recover damages according to the positive interest model. This happened in parallel with the recognition by the legal order of the doctrine of counter provision.
Functionally, if we draw a parallel with the domestic legal order, the counter provision in the common law system implements the idea of compensation, the form of the contract, signaling the onset of legally binding relations, as well as the achievement by the parties of mutual certainty of relations. Compensation, the required form and certainty, according to the hypothesis put forward, are the political and legal set that in the historical context signals the presence of a subjective right and justifies the reasonableness of the creditor’s expectations, which opens the door for the implementation of the positive interest model in the recovery of damages in case of breach of contract.
About the Author
R. V. MakarovaRussian Federation
Radmila V. Makarova, graduate student at Department of Civil Law of the Faculty of Law
Saint Petersburg
References
1. Bachinin, V. A. Metaphysical culturology of law and legal artifacts. Formation of a disciplinary space for culturologists: Proceedings of the scientific and methodological conference, January 16, 2001 [Metafizicheskaja kul’turologija prava i juridicheskie artefakty. Formirovanie disciplinarnogo prostranstva kul’turologi : Materialy nauchnometodicheskoj konferencii, 16 janvarja 2001]. St. Petersburg: St. Petersburg Philosophical Society [SanktPeterburgskoe filosofskoe obshhestvo], 2001. No. 11. P. 10–15. Symposium Series.
2. Berman, G. J. Western tradition of law: the era of formation [Zapadnaja tradicija prava: jepoha formirovanija]. M.: Infra-M, 1998. 624 p.
3. Budylin, S. L. Tort or breach of contract? Representations and warranties in Russia and abroad [Delikt ili narushenie dogovora? Zaverenija i garantii v Rossii i za rubezhom.]. The Herald of Economic Justice of the Russian Federation [Vestnik jekonomicheskogo pravosudija Rossijskoj Federacii]. 2016. Part 1. No. 3. P. 96–133; Part 2. No. 4. P. 52–111.
4. Budylin, S. L. Historical roots of US contract law [Istoricheskie korni dogovornogo prava SShA]. International Public and Private Law [Mezhdunarodnoe publichnoe i chastnoe parvo]. 2009. No. 4. P. 32–35.
5. Garcia Garrido, M. H. Roman private law: Incidents, claims, institutions [Rimskoe chastnoe pravo: Kazusy, iski, instituty]. M. : Statut, 2005. 812 p.
6. Hegel, G. Philosophy of law [Filosofija prava]. URL: https://e-libra.su/read/362194-filosofiya-prava.html (дата обращения: 01.02.2023).
7. Grotsy, G. O. The right of war and peace [Pravo vojny i mira]. M.: Ladomir, 1994. 868 p.
8. Dvorkin, R. Seriously about rights [O pravah vser’ez]. M., 2004. 392 p.
9. Dozhdev, D. V. Comparative law: state and prospects [Sravnitel’noe pravo: sostojanie i perspektivy]. Russian Yearbook of Comparative Law [Rossijskij ezhegodnik sravnitel’nogo prava]. St. Petersburg, 2008. No. 1. P. 7–28.
10. Dozhdev, D. V. Retention, legal possession and the problem of priority [Uderzhanie, zakonnoe vladenie i problema prioriteta]. Lawyer [Jurist]. 2014. No. 19. P. 9–15.
11. Iering, R. Struggle for the right [Bor’ba za parvo]. M., 1907. 64 p.
12. Iering, R. The spirit of Roman law at various stages of its development [Duh rimskogo prava na razlichnyh stupenjah ego razvitija]. Part 1. St. Petersburg, 1875. 321 p.
13. Iering, R. Interest and law. Applications: 1. Passive actions of rights. 2. Purpose in law: lane. with him [Interes i pravo. Prilozhenija: 1. Passivnye dejstvija prav. 2. Cel’ v prave: per. s nem]. Yaroslavl, 1880. 300 p.
14. Iering, R. Purpose in law [Cel’ v prave]. St. Petersburg: Edition of N. V. Muravyov, 1881. V. 1. 412 p.
15. Ioffe, O. S. Obligation law [Objazatel’stvennoe parvo]. M.: Yurid. lit., 1975. 880 p.
16. Calabresi, G. The future of law and economics: essays on reform and reflections [Budushhee prava i jekonomiki: ocherki o reforme i razmyshlenija]. M.: Publishing House of the Gaidar Institute, 2016.
17. Kant, I. Collected works in eight volumes [Sobranie sochinenij v vos’mi tomah]. Choro Publishing House [Izdatel’stvo Choro], 1994. Vol. 6. 612 p.
18. Karapetov, A. G. Economic analysis of law [Jekonomicheskij analiz prava]. M.: Statut, 2016.
19. Karapetov, A. G. Politics and dogma of civil law [Politika i dogmatika grazhdanskogo prava] [Electronic resource]: historical essay. Access from ATP “ConsultantPlus”. (Access date: 01.02.2023.)
20. Kirpichev, A. E. Non-classical theories of the contract (contract-promise, discrete, relational and network contracts) in the context of the new edition of the Civil Code of Russia [Neklassicheskie teorii dogovora (dogovor-obeshhanie, diskretnye, reljacionnye i setevye dogovory) v kontekste novoj redakcii GK Rossii] [Electronic resource]. Access from ATP “Consultant Plus”. (Access date: 01.02.2023.)
21. Lebedev, A. V. Aristotle. New Philosophical Encyclopedia [Aristotel’. Novaja filosofskaja jenciklopedija]. [Inst. of Philosophy RAS, Nat. social-scientific Fund]. 2nd ed., rev. and additional M.: Thought, 2010. Vol. 1. 744 p.
22. Makarova, R. V. Definition of a contract as a promise in the Anglo-American legal discourse [Opredelenie dogovora kak obeshhanija v anglo-amerikanskom pravovom diskurse]. International research journal [Mezhdunarodnyj nauchnoissledovatel’skij zhurnal]. 2017. No. 6. P. 65–66.
23. Makarova, R. V. Ontheproblemoftherelationshipofreciprocity, compensationand Englishconsideration(consideration) [K probleme sootnoshenija vzaimnosti, vozmezdnosti i anglijskogo vstrechnogo predostavlenija (consideration)]. Leningrad legal journal [Leningradskij juridicheskij zhurnal]. 2018. No. 1 (51). P. 108–118.
24. Makovskaya, A. A. Reform of contract law in France. New provisions of the French Civil Code [Reforma dogovornogo prava vo Francii. Novye polozhenija Grazhdanskogo kodeksa Francii]. The Herald of Economic Justice of the Russian Federation [Vestnik jekonomicheskogo pravosudija Rossijskoj Federacii]. 2016. No. 8. P. 76–101.
25. Marx, K., Engels, F. Economic and philosophical manuscripts of 1844 [Jekonomichesko-filosofskie rukopisi 1844 goda]. Op. T. marx42.
26. Mill, J. S. About freedom [O svobode] [Electronic resource]. URL: http://www.civisbook.ru/files/File/Mill.O svobode. pdf.
27. Pozner, R. A. Economic analysis of law [Jekonomicheskij analiz prava]. St. Petersburg, 2004. T. 1. 522 p.
28. Poldnikov, D. Yu. Institute of the contract in the legal science of Western Europe XI–XVIII centuries [Institut dogovora v pravovoj nauke Zapadnoj Evropy XI–XVIII vv.]. M., 2013.
29. Rawls, J. Theory of justice [Teorija spravedlivosti]. Novosibirsk: publishing house of NSU, 1995. 523 p.
30. Rothbard, M. Power and market: State and economy [Vlast’ i rynok: Gosudarstvo i jekonomika]. Chelyabinsk: Sotsium, 2003.
31. Sen, A. The idea of justice [Ideja spravedlivosti]. M.: Gaidar Institute Publishing House, 2016. 518 p.
32. Khalfina, R. O. Contract in English civil law [Dogovor v anglijskom grazhdanskom prave]. M.: Publishing House of the Academy of Sciences of the USSR, 1959. 319 p.
33. Hart, G. L. A. The concept of law [Ponjatie prava]. St. Petersburg, 2007. 300 p.
34. Zweigert, K., Kertz, H. Introduction to comparative law in the field of private law: in 2 vols [Vvedenie v sravnitel’noe pravovedenie v sfere chastnogo prava: v 2 t.]. M.: International relations, 2000. 480 p.
35. Anson, W. Prinсiples of the Law of Contract / Ed. by Corbin. 1919. 678 p.
36. Anson, W. Principles of the law of contract. Chicago, 1880. 567 p.
37. Anson’s law of contract Edition / Ed. by J. Beatson, A. Burrows, J. Cartwright. 29th ed. Oxford University Press, 2010. 849 p.
38. Atiyah, P. S. An Introduction to The Law of Contract. Clarendon Press, 1961. 246 p.
39. Atiyah, P. S. Consideration in Contracts: A Fundamental Restatement. Canberra, 1971. 61 p.
40. Atiyah, P. S. Essays in Contract. Clarendon Press, 1990. 396 p.
41. Atiyah, P. S. Promises, Morals and the Law. Oxford: Oxford University Press, 1981. 226 p.
42. Atiyah, P. S. The Rise and Fall of Freedom of Contract. Oxford: Clarendon Press, 1979. 792 p.
43. Andrews, N. Contractual Duties: Performance, Breach, Termination and Remedies. London : Sweet & Maxwell, 2017.
44. Barnett, R. E. Contract is Not Promise; Contract is Consent. Georgetown Public Law and Legal Theory Research Paper. P. 11–29.
45. Becker, M. E. Promissory Estoppel Damages. Hofstra Law Review. 1987. No. 16.
46. Bix, B. Theories of Contract Law and Enforcing Promissory Morality: Comments on Charles Fried. Suffolk University Law Review. 2012. No. 3. Р. 719–734.
47. Blackstone, W. Commentaries on the Laws of England. London, 1766. Vol. 1. 702 p.
48. Buckland, W. W. Roman Law and common law a comparison in outline. Cambridge University Press, 1965. 439 p.
49. Burrows, A. A Restatement of the English law of contract. Oxford, 2016. 320 p.
50. Burrows, А. Understanding the law of obligations essays on contract, tort and restitution. Hart Publishing Oxford, 1998. 248 p.
51. Calabresi, G., Melamed A. D. Property Rules, Liability Rules, and Inalienability: One View of the Cathedral. Harvard Law Review. 1972. Vol. 85. P. 1089–1128.
52. Charman, М. Contract Law. Fourth edition. Willan Publishing, 2007. 340 p.
53. Chitty on Contracts. 32nd ed. Vol. 1. General Principles Sweet& Maxwell, 2016. 2561 p.
54. Collins, H. The Law of Contract. 3rd ed. Butterworths, 1997. 408 p.
55. Cooter, R., Ulen T. Law & economics. Pearson Education, 2008. 555 p.
56. Craswell, R. Against Fuller and Perdue. U. Chi. L. Rev. Vol. 67. 2000. Iss. 1. P. 99–161.
57. Dawson, J. P., Harvey W. B. Cases on Contracts and Contract Remedies. New York, 1969.
58. Epstein, R. A. Defense of the Contract at Will. U. CHI. L. Rev. 1984. No. 51. Р. 947–953.
59. Feinman, J. M. The Last Promissory Estoppel Article. Fordham L. Rev. 1992. No. 61.
60. Fried, C. Contract As Promise: a Theory of Contractual Obligation. Oxford University press, 2015. 200 p.
61. Fuller, L. L. Consideration and Form. Columbia Law Review. 1941. Vol. 41. No. 5. P. 799–824.
62. Fuller, L. L. The Reliance Interest in Contract Damages. Yale Law Journal. 1937. No. 2. P. 373–420.
63. Furmston, Cheshire, Fifoot and Furmston’s Law of Contract / Historical Introduction. Oxford, 2012.
64. Friedmann, W. G. Some Reflections on Status and Freedom. Essays in jurisprudence in honor of Roscoe Pound 236 / Ed. by Ralph A. Newman. 1962.
65. Gilbert, M. Three Dogmas about Promising. Promisses and Agreements. Philosophical Essays. Oxford Press, 2011. 409 p.
66. Gilbert, M. Walking Together: A Paradigmatic Social Phenomenon. Midwest Studies in Philosophy. 1990. No. 1. P. 1–14.
67. Gilmore, G. The Death of Contract. The Ohio State University Press, 1995. 182 p.
68. Goetz, C. J., Scott, R. E. Principles of Relational Contracts. Virginia Law Review. 1981. Vol. 67. No. 7. P. 1089–1150.
69. Gordley, J. Enforcing Promises’. California Law Review. 1995. No. 83. P. 547– 614.
70. Gordley, J. Mistake in Contract Formation. The American Journal of Comparative Law. 2004. No. 52. P. 433–468.
71. Gordley, J. The Enforceability of Promises in European Contract Law. Cambridge University Press, 2004. 478 p.
72. Gordley, G. The philosophical origins of modern contract doctrine. Oxford: Oxford University Press, 2001. 272 p.
73. Hillman, R. A. The Richness Of Contract Law An Analysis and Critique of Contemporary Theories of Contract Law. Springer Science+Business Media. B.V, 1997. 279 p.
74. Holmes, Е. Is There Life After Gilmore’s Death of Contract-Inductions from a Study of Commercial Good Faith in FirstParty Insurance Contracts. L. Rev. 1980 P. 330–350.
75. Holmes, O. W. The Common Law. University of Toronto Law School. Typographical Society, 2011. 381 p.
76. Hunt, A. The Theory of Critical Legal Studies. Oxford Journal of Legal Studies. 1986. Vol. 6. No. 1. P. 1–45.
77. Ibbetson, D. J. A historical introduction to the law of obligations. Oxford: Oxford University Press, 2001. 352 p.
78. Jenks, E. The History of the Doctrine of Consideration in English Law. Cambridge: Cambridge University Press, 1892. 225 p.
79. Jhering, R. In the Heaven for Legal Concepts: A Fantasy. Temple Law Quarterly. 1985. No. 58. P. 799–842.
80. Kennedy, D. Distributive and Paternalistic Motives in Contract and Tort Law, with Special Reference to Compulsory Terms and Unequal Bargaining Power. Maryland Law Review. 1982. No. 1.
81. Kennedy, D. Form and Substance in Private Law Adjudication. Harv L Rev 1685. 1976. No. 89. P. 1713–1722.
82. Kronman, A. T. Paternalism and the Law of Contracts. The Yale Law Journal 1983. No. 5. P. 763–798.
83. Landmark Cases in the Law of Contract / Ed. by Ch. Mitchell and P. Mitchell. Oxford, 2008. 373 p.
84. Langdell, С. С. Selection of Cases on the Law of Contracts. Boston: Little Brown & Co, 1871. 1022 p.
85. Macneil, I. Contracts: Adjustments of Long-Term Economic Relations Under Classical, Neoclassical, and Relational Contract Law. Nw. U. L. Rev. Vol. 72. 1978. No. 6. P. 854–901.
86. McKendrick, E. Contract Law Text, Cases and Materials. 5 ed. Oxford University Press, 2012. 1053 p.
87. Michaels, R. The Functional Method of Comparative Law. Oxford Handbook of Comparative Law / Ed. by M. Riemann, R. Zimmermann. Oxford, 2008. P. 339–382.
88. Murray, J. E. Contract Theories and the Rise of Neoformalism. Fordham L. Rev. 2002. No. 71. P. 869–913.
89. Murray, Jr., Murray, T. Corbin on Contracts Desk Edition. Matthew Bender, 2017. 1885 p.
90. Owens, D. The Problem with Promising. Promises and Agreements: Philosophical Essays. Oxford Press, 2011. Р. 52–63.
91. Pettit, M. Jr. Private Advantage and Public Power: Reexamining the Expectation and Reliance Interest in Contract Damages. Hastings L J Р. 1987. No. 38.
92. Pollock, F. Principles of Contract at law and in equity. 1 st American ed. Robert Clarke & Co, 1881. 718 p.
93. Scanlon, T. M. Promises and Contracts/ Ed by Peter Benson. Philosophy and Contract Law. Cambridge, 2000. (manuscript on file with U Chi L Rev).
94. Sandel, M. Justice: What’s the right thing to do? New York, 2009. 320 p.
95. Sen, A. Well-being, Agency and Freedom. The Dewey Lectures. 1984. J. of Filosophy. 1985. No. 4. Р. 169–221.
96. Sheinman, H. Introduction. Promisses and Agreements: Philosophical Essays. Oxford Press, 2011. Р. 3–58.
97. Simpson, A. W. B. A History of the Common Law of Contract: The Rise of the Action of Assumpsit. Clarendon Press Oxford, 1996. 646 p.
98. Smith, S. A Reports on English law / Ed. by J. Gordley. The Enforceability of Promises in European Contract Law. Cambridge : Cambridge University Press, 2001. 478 p.
99. Spelman, J. The Reports of Sir John Spelman. Vol. 1 & 2. Selden Society, 1977. 238 p.
100. Treitel, G. The Law of Contract. 13th ed. 2011. 1212 p.
101. Verkerke, J. H. Contract Doctrine, Theory & Practice. CALI eLangdell Press, 2012. Vol. 1. 155 p.
102. Vitek, W. Promising. Philadelphia : Temple University Press, 1993. 270 p.
103. Waddams, S. Principle in Contract Law: the Doctrine of Consideration. Exploring Contract Law / Ed. by J. Neyers, R. Bronaugh, S. Pitel. Oxford, 2009. Р. 61–75.
104. Whitford, W. C., Macaulay S., Hoffman V. Red Owl Stores: The Rest of the Story. Hastings L. J. 2009–2010. Vol. 61. Р. 802–854.
105. Zimmermann, R. The Law of Obligations Roman Foundations of the Civilian Tradition. Тhe rustica press (pty) ltd, ndabeni, cape. 1992. 1142 p.
106. Zumbansen, P. Introduction: Private Ordering in a Globalizing World: Still Searching for the Basics of Contract. Indiana Journal of Global Legal Studies. 2007. Vol. 14. No. 2. Р. 181–190.
107. Allen, Н. Promises. The Stanford Encyclopedia of Philosophy [Электронный ресурс] / Ed. by N. Z Edward. Spring Edition, 2014. URL: https://plato.stanford.edu/archives/spr2014/entries/promises
108. Hume, D. A. A Treatise on Human Nature [Электронный ресурс] / Ed. by L. A. Selby-Bigge. Oxford: Clarendon Press. URL: http://www.gutenberg.org/files/4705/4705-h/4705-h.htm#link2H_4_0092
109. Lorenzen, E. G. Causa and Consideration in the Law of Contracts (1919) [Электронный ресурс]. Faculty Scholarship Series. Paper 4560. URL: http://digitalcommons.law.yale.edu/fss_papers/4560
110. Scott, R. E. Hoffman v. Red Owl Stores and the Myth of Precontractual Reliance [Электронный ресурс]. Essay in a symposium on «Commercial Calamities». Ohio State L. J. 1, 2007. No. 68. URL: http://web.law.columbia.edu/sites/default/files/microsites/contract-economic-organization/files/working-papers/Hoffman%203.0%20final.pdf
Review
For citations:
Makarova R.V. Dogmatic and Political-Legal Justification for the Protection of Positive Interest in the Recovery of Damages in Case of Breach of Contract. Theoretical and Applied Law. 2023;(1):69-86. (In Russ.) https://doi.org/10.22394/2686-7834-2023-1-69-86