Document Type
Article
Publication Date
2015
Publication Title
Supreme Court Economic Review
Publication Title (Abbreviation)
S. Ct. Econ. Rev.
Volume
23
Issue
1
First Page
341
Last Page
351
Abstract
Existing literature on the contract law doctrine of duress identifies a number of tests to determine conditions under which a contract can be voided. No article provides a specific and formal economic analysis on the link between rent-seeking and the conditions under which allowing a defense of duress is wealth enhancing. This article shows that commitments made as a result of ex ante investments by threatening parties made solely for the purpose of transferring, rather than creating wealth, ought to be voidable. We discuss cases in which a test based on rent-seeking enhances efficiency where previously proposed tests do not.
DOI
https://doi.org/10.1086/686483
Faculty Biography
https://law.fsu.edu/faculty-staff/mark-seidenfeld
Recommended Citation
Mark Seidenfeld and Murat C. Mungan,
Investments to Make Threats Credible, Rent-Seeking, and Duress, 23
S. Ct. Econ. Rev.
341
(2015),
Available at: https://ir.law.fsu.edu/articles/598
Comments
First published in Supreme Court Economic Review.