Friehe & Teitelbaum on Duality in Contract and Tort

Tim Friehe & Joshua Teitelbaum have posted to SSRN Duality in Contract and Tort.  The abstract provides:

We study situations in which a single investment serves the dual role of increasing the expected value of a contract (a reliance investment) and reducing the expected harm of a post-performance accident (a care investment). We show that failing to account for the duality of the investment leads to inefficient damages for breach of contract and inefficient standards for due care in tort. Conversely, we show that accounting for the duality yields contract damage measures and tort liability rules that provide correct incentives for efficient breach and reliance in contract and for efficient care in tort.