A New Version of the Reliance Theory

Abstract

This article contrasts contract law understood in terms of duties of performance based on an exchange of promises with an alternative approach based on an agreement to assume responsibility for reliance. It explains why the reliance approach is not open to the objections made of other versions of the reliance theory of contract, including the “death of contract” theory, or to the “circularity” objection to reliance theories, and it also shows that the suggested reliance approach provides a better account of contract law, both as to the remedial regime and as to various aspects of the substantive law.