'Protection of Precontractual Investment'



The study analyses the problem of frustration of a precontractual investment in the event of a break-off of negotiations. The difficulty is that a fault-based liability under the concept of culpa in contrahendo requires a breach of duty which is usually absent in such situations. The author proposes a coherent liability concept which - apart from fault-based liability - provides for a liability irrespective of fault to ensure a fair allocation of risks.