Fordham Law School Professor Aditi Bagchi posted on Legal Theory Blog about contract interpretation and negative externalities.
Contract law does not adequately account for the harms that we can inflict on third parties by joint agreement. Some terms are prohibited, and some third party interests are protected by independent causes of action. But a wide variety of legal interests may be burdened by other people’s contracts. This Article proposes that ambiguous contracts be construed to avoid harming third parties.
Read the professor’s entire post here.
