The Role of Remedies in the Relational Theory of Contract-A Preliminary Inquiry

Yehuda Adar, Moshe Gelbard

Research output: Contribution to journalArticlepeer-review


The article addresses a puzzle. The puzzle is the neglect of the vast literature on relational and long-Term contracts to explore a seemingly key aspect, namely: How, if at all, should the relational nature of a contractual transaction affect the basic rules governing the award of remedies for breach of contract' The authors argue that contrary to a widely held assumption, formal rules of remedy do play a significant role in the relational context. Furthermore, understanding the function of formal remedies in the relational context is crucial for the development of a full-scale relational theory of contract. In light of this basic assertion, a theoretical model of relational remedies is then introduced. The model offers a number of guiding principles, which should be taken into account by courts (or legislators) when awarding remedies for the violation of contractual rights in a relational setting.

Original languageEnglish
Pages (from-to)399-424
Number of pages26
JournalEuropean Review of Contract Law
Issue number3
StatePublished - 30 Mar 2011

Bibliographical note

Publisher Copyright:
© 2011 Walter de Gruyter GmbH, Berlin/Boston.

ASJC Scopus subject areas

  • Law


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