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Contract Negotiations and the Importance of Being Earnest

Mäenpää, Kalle

JFT 2010/4 s. 322–350



Business-to-business contracts are usually concluded after lengthy negotiations. If a party withdraws from costly negotiations before the contract is clearly concluded, the parties can disagree on whether they have already entered into a binding contract, and if not, who covers the negotiation costs and losses that have incurred. The article attempts to answer the following questions: when can liability for failed contract negotiations incur, what is the amount of compensation and what is the legal nature of the liability? In addition a comparative and international approach is applied.

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