compensate pure economic losses from the point of view of economic analysis of civil responsibility

Sjeikhi, Fatemeh; Darabpour, Mehrab

doi:10.48308/eclr.2023.231538.1021

compensate pure economic losses from the point of view of economic analysis of civil responsibility

Document Type : Original Article

Authors

Fatemeh Sjeikhi ¹

Mehrab Darabpour ²

¹ Student, Faculty of Law, Oil and Gas Law Department, Shahid Beheshti University, Tehran, Iran.

² International Trade Law, Faculty of Law, Shahid Beheshti University, Tehran, Iran

https://doi.org/10.48308/eclr.2023.231538.1021

Abstract

Pure economic damages are not damages to the purpose or benefit of a property. Rather, the funds that can be acquired are lost and damaged as a result of intentional behavior (violation of contractual obligations) or negligent actions (non-contractual liability), causing damage to the third party or contract party. One of the most challenging issues related to this type of loss is the ability to compensate for the damages caused by the damage. Therefore, the question raised in the current research is, on what principles can pure economic losses be compensated? According to the traditional theory of civil responsibility and economic analysis of rights, pure economic damages cannot be compensated. But the available reasons and documents indicate that based on the principles of economic analysis of civil liability, pure economic damages can be compensated. One of the important pillars of economic analysis is civil responsibility, deterrence and economic efficiency. Therefore, another question is whether the compensation of purely economic losses based on the economic analysis of civil liability leads to the creation of economic efficiency or not? The present research using the analytical-descriptive method has shown that creating an optimal level of economic efficiency and favorable conditions in the welfare and economy of society is one of the direct results of compensation for pure economic losses based on the economic analysis of civil responsibility.

Keywords

pure economic loss

economic efficiency

compensability

economic analysis of rights

economic analysis of civil liability

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