The Exegetical School of Law, which postulated the defense of legal literalism, meant that in matters of obligations, forced fulfilment or specific performance of obligations was central to the system of contractual remedies. Furthermore, contractual literalism prevents the judge from revising the contract, unless the requisites of existence and validity are affected. The objective theory of contracts would change this maxim, allowing the judge to intervene the contract and alter how its specific performance operates. The most significant expression of the objective paradigm –which allows for limited intervention of the contract by the judge– is the European law of remedies. The objective theory has been developed fundamentally through the principle of good faith. The present work highlights the theories that are based on contractual equity in order to contrast it with the economic analysis of contracts.


contractual literalism law of remedies contractual equity law & economics