A New Version of the Reliance Theory

In contract law, a crude distinction can be drawn between the classical theory and the reliance theory. The main features of the classical theory seem to be freedom of contract, the bargain theory of consideration, and the expectation measure of damages, and those of the reliance theory limited freedom of contract, an expansion of contract to include cases of detrimental reliance not arising out of an agreement or bargain, and the reliance measure of damages. On one view, the reliance theory is tantamount to the reduction of contract into tort and restitution and the rejection of a distinct law of contract. However it has never been made clear exactly how to characterise the classical theory and the reliance theory.