Economic analysis of Latvian Civil Law

Section 2349 refers to backwards-looking legal relief, meaning, it compensates for something
that is already done, such relief is referred to as damages, the usual relief for broken promises
and accidents, therefore most apparent in contract and tort law, in legal literature called the
liability rule.
Legal literature on this subject has also further clarified that whether an injury
constitutes mutilation is decided by the court, but the fact that this bodily harm is irreversible
is decided by an expert.
This Section within the Civil Law of Latvia regulates civil liability on unlawful harms
- torts, specifically, not only regarding material harm., but also immaterial harm that derives
from violations of personal rights.97 When deciding on the moral compensation the Civil Law
does not define what constitutes moral compensation, material compensation can be asked
only in the cases when it is specified in the law, Section 2349 is one of these cases.The
court when deciding the amount of awarded moral compensation must act in accordance with
Section 5 of the Civil Law, fair consensus and general principles of law.
The costs of negotiation, moreover, given the fact that you cannot realistically
negotiate with every person that you will encounter, compared to the insignificant probability
of the event actually taking place explain why parties do not negotiate all possible events that
could cause harm.
Legal literature concludes that: “The economic essence of tort law is its use of liability
to internalize externalities created by high transaction costs.”…