Termination as a Remedy in the Common European Sales Law: A Law and Economics Approach.

The aim of this paper is to contribute to the understanding of the implications of CESL for European Contract Law by looking into the remedies available to the parties for the breach of a sales contract, and in particular to examine the legal regime of termination for breach of contract. Our approach emphasizes the strategic and economic dimensions induced by the legal solutions in CESL as this is a particularly promising way to evaluate the likely impact of proposed legal solutions. We focus on the heterogeneity of the effects that termination may induce both in terms of incentives and overall social costs. Our findings lend some support to the policy option in CESL of a more liberal termination regime for consumers in B2C contracts than for commercial parties. [ABSTRACT FROM AUTHOR]