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We will be limited to a simple case when the damage caused by cattle is less, than
"Rents" both farmer, and the cattle breeding earth. We will consider influence
Damage liability rules on conditions of contracts which conclude
Farmers and cattlemen. If the cattleman should compensate to the farmer
Damage caused by cattle, rent size for the earth would go down on
The sum of compensatory payments for a damage, whereas size of rent payments
The farmer would increase by the same sum (in comparison with a case, when
Any indemnifications it would not be necessary to pay and receive). Riches of farmers and
Cattlemen would remain to the same irrespective of a responsibility rule for
Damage caused by cattle. But what with land owners? If for it crops
It is necessary to pay indemnification, the price of rent of the cattle breeding earth will be less,
And the price of rent of the farmer earth will be more than in a case, when indemnification
It is not necessary to pay. But if the damage liability rule is known in advance,
It will be reflected in the price on which the earth, and for the earth is got under
The cattle breeding will be paid less, and for the earth under farming - more than in
Case when it would be necessary to pay indemnifications. Riches of land owners,
Thus, will not change, as changes in an earth sale price will be
Are counterbalanced by changes in the price for earth rent - at change legal
Positions in relation to a damage liability rule. Thus, a choice
Various rules of a damage liability does not involve consequences for
Distributions of riches and the changes connected with it in demand, influence
Which followed consider. Though I have considered only a case, in which
The damage was less "rents" as farmers, and the cattlemen, similar results
Can be received for all cases analysed in section III.
It is possible to think that the analysis of what influence render distinctions in the legal
The positions, assuming in each case that the parties have completely adapted
To them, it to a situation when there is a transition from one system to
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