Economic Analysis of Exemption Clause

Document Type : Scientific research

Author

• mohammad abedi

Ferdowsi University of Mashhad

https://doi.org/10.22067/le.v22i7.26841

Abstract

The conflict between freedom parties of contract to choose the terms and contents of the contract with the necessity of compensation of illicit damage, on the one hand, and contrasting economic and social benefits and problems of exemption clause, in the other hand, lead to legal system is doubtful for permit it, and despite the tendency to accept the validity it as a principle, several exceptions to this principle are imported to prevent unfair agreements. An economic analysis of exemption clause and survey to the its economic disadvantages and benefits and its role in the efficiency help to facilitate to find contractual justice.
Method of research is analytical and descriptive method and, during the necessity, we have comparative method to it will be clear to other legal systems approach.
Economic analysis to exemption clause shows that the acceptance the principle of validity of exemption clause leads to economic efficiency, but when the contract is incomplete, as because it is monopoly and data inequality, intervention of court is necessity to modify or void exemption clause. The result is usually, but not always, consistent the legal analysis of exemption clause.

Keywords

• law of contract
• economic analysis of contract
• economic efficiency
• exemption clause
• unfair clause

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