What Is Vicarious Performance? What Types of Contracts Cannot Be

question 48

Essay

What is vicarious performance? What types of contracts cannot be vicariously performed?

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Definitions:

Internalize

The process of incorporating the cost of externalities into the decision-making processes of relevant parties, often through regulation or market-based incentives.

Corrective Taxes

Taxes designed to correct the market outcomes that are not efficient by themselves, usually by discouraging negative externalities.

Market-Based Solution

Strategies or policies that use market forces and principles to address and solve economic and social issues.

Pollution

The release of pollutants into the environment, leading to harmful changes, typically resulting from human actions.