ECONOMIC ANALYSIS OF REMEDIES FOR BREACH OF OBLIGATION, SPECIFIC PERFORMANCE

Specific Performance and Compensation are main remedies for breach of obligation. Different legal systems, dependent upon their philosophical, legal and ethical attitudes, gave different priority to one of them and used another as an exceptional or discretionary remedy. Economic analysis of law, with a consequential approach, shows an optimal mechanism of contractual remedies to give higher priority to one of them in accordance with the conditions of that assumption. However, economic analysis has another important function and shows legal systems with similar goals. They usually applied different ways  to achieve these goals. Thus, effectiveness and convergence can be considered as two important results of economic analysis. This research emphasizing on specific performance argues the advantages of specific performance compared with the compensation to offers suggestions for the legal systems.