Correction of my exposition-: Uncertainty and Liquidity Preference

[Paul Davidson <pdavidson@xxxxxxx>]

At 04:36 PM 7/15/99 -0500, you wrote:
 In response to Aldo I wrote:

>NO!!! I am saying and have been saying that all contractual liabilities are
>legally dischargable by the payment of money. Or in other words, State
>enforcement of all contracts are in terms of money -- even if you
>contractually agree to sell someone apples and you do not deliver what you
>said you would, all the buyer can do is sue you in court and if you refuse
>to deliver apples, the court can merely force you o pay the buyer the
>damages in terms of buying apples.


Now these last few words may not make my meaning clear. What the court can
enforce is  "compensation" in the form of money for the damages inflicted
on the buyer who was unable to obtain the apples fthat the seller had
contractually agreed to deliver.  The damages will normally be equal to the
cost of buying apples elsewhere -- unless the complaining party can show
additional damages was caused, e.g.,significant extra  costs to find
another seller, etc.

I hope this clears up any confusion my exposition might have caused.

paul
Paul Davidson
Holly Chair of Excellence in Political Economy
Economics Department -- 523 SMC
University of Tennessee
Knoxville, Tennesseee 37996-0550
email: Pdavidson@xxxxxxx;
phone: (423)974-4221;    fax: (423) 974-1686
http://econ.bus.utk.edu/Davidson.html