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10-Aug-2016 17:05 by 5 Comments

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[Tracked on June 30, 2010 PM] A larger problem is restrictive covenants that follow land become an easy way to form non libertarian governments within libertarian societies, making libertarianism that enforces restrictive covenants non-equilibrium. If I create a restrictive covenant, I am either increasing the value of the property somehow (in which case the next owner presumably won't want to remove it) or more likely, reducing my property's resale value in exchange for the comfort of knowing it will be used how I like.Why does it matter whether we obey the dead's preferences?

There is one problem with Bryan Caplan's argument - it presupposes that you can somehow "unbundle" ownership as a legal right.The more general lesson is that using libertarian legal theory to undermine unsavory private agreements doesn't really work.As long as contracting parties know the details of the legal theory, they can manipulate them to approximate whatever outcome they want. If the law ignores naked promises, parties who want them enforced can switch to, "If I refuse to marry you on this date, you owe me

There is one problem with Bryan Caplan's argument - it presupposes that you can somehow "unbundle" ownership as a legal right.The more general lesson is that using libertarian legal theory to undermine unsavory private agreements doesn't really work.As long as contracting parties know the details of the legal theory, they can manipulate them to approximate whatever outcome they want. If the law ignores naked promises, parties who want them enforced can switch to, "If I refuse to marry you on this date, you owe me $1,000,000." Non-libertarians can readily invalidate contracts as "contrary to public policy" or "unconscionable," but libertarians don't have that luxury. But what if my criticism calls homeowners associations into question?unbundling this set of rights we call "ownership" and alienating one of them (unrestricted right to resell - ius disponendi).But there are issues with that, and in jurisdictions I am familiar with it is usually impossible among private parties. Well, standard explanation is that would undermine the notion of ownership and its social utility - you would never know whether the seller transfers to you "full bundle" or just a "limited option".I've read enough of them to know that at least some reject the notion of an association having legal personality apart from the legal personality of its members (e.g., through limited liability incorporation).

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There is one problem with Bryan Caplan's argument - it presupposes that you can somehow "unbundle" ownership as a legal right.

The more general lesson is that using libertarian legal theory to undermine unsavory private agreements doesn't really work.

As long as contracting parties know the details of the legal theory, they can manipulate them to approximate whatever outcome they want. If the law ignores naked promises, parties who want them enforced can switch to, "If I refuse to marry you on this date, you owe me $1,000,000." Non-libertarians can readily invalidate contracts as "contrary to public policy" or "unconscionable," but libertarians don't have that luxury. But what if my criticism calls homeowners associations into question?

unbundling this set of rights we call "ownership" and alienating one of them (unrestricted right to resell - ius disponendi).

But there are issues with that, and in jurisdictions I am familiar with it is usually impossible among private parties. Well, standard explanation is that would undermine the notion of ownership and its social utility - you would never know whether the seller transfers to you "full bundle" or just a "limited option".

I've read enough of them to know that at least some reject the notion of an association having legal personality apart from the legal personality of its members (e.g., through limited liability incorporation).

,000,000." Non-libertarians can readily invalidate contracts as "contrary to public policy" or "unconscionable," but libertarians don't have that luxury. But what if my criticism calls homeowners associations into question?unbundling this set of rights we call "ownership" and alienating one of them (unrestricted right to resell - ius disponendi).But there are issues with that, and in jurisdictions I am familiar with it is usually impossible among private parties. Well, standard explanation is that would undermine the notion of ownership and its social utility - you would never know whether the seller transfers to you "full bundle" or just a "limited option".I've read enough of them to know that at least some reject the notion of an association having legal personality apart from the legal personality of its members (e.g., through limited liability incorporation).

It seems to me that there are practical problems in the law of associations, agency, and trust.

Obligation not to resale your property without third party's consent is merely an obligation, which generally would mean that you are allowed to sell your property without this consent and only then, compensate this third party for breach of contract (assuming that there was one in the first place).

The sell in question is valid and legal nevertheless. Caplan suggests would mean a "real" effect of a contract not to resell, ie.

A larger problem is restrictive covenants that follow land become an easy way to form non libertarian governments within libertarian societies, making libertarianism that enforces restrictive covenants non-equilibrium. I don't think his original criticism even makes sense.

"It's a bit like feudalism and feudalism is Very Bad" isn't exactly an argument.

Anyway, it's always great to see a discussion on libertarian legal theory, although it reminds me that this "theory" still requires a lot of work.

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