An Economic Analysis of Land Lease Disputes:A Case Study of Taiwan Sugar Company Land Lease Rent Adjustment in Neipu Township of Pingtung County

Abstract

This article researches the standard form contracts and lease rate adjustment by economic analysis based on a case of base leasing disputes of Taiwan Sugar Company in Neipu Township of Pingtung County The economic analysis of law is still at the stage of theoretical research in academia and it is rarely practiced in judgments Furthermore the economic theory of contract law usually focuses on commercial contracts or rules of the transfer of ownership not annulling lease and land resource allocation or the protection for lessee are rarely researched in our country This article objectively analyzes and determines above issues with the economic analysis of law including the fairness of standard form contracts and rationality of rent standard This article analyzes the judgment of the courts and discusses the system of law with the economic theory of contract law and cost analysis Moreover Taiwan Sugar Company is a state-owned corporation so this article discusses the issues about monopoly abuse of economic ability pressure of negotiation procedural and substantive unfairness for the standard form contract Then this article analyzes rationality of rent standard from the aspect of land rent theory land value tax shifting leasing market quotation and wealth maximization In addition this article analyzes costs and benefits with benchmark approach Finally it discusses the efficient allocation of breach and performance in game theory This article judges between efficiency and justice with economic analysis and it claims that the purpose of establishing state-owned enterprise is to develop national capital and promote economic development The government is only a deputy of property management because the land of state-owned enterprise is public property If the government sacrifices the benefits of country for individual interests the failure of public policy would cause the external cost of the whole society If the policy of government serves individual the failure of public policy causes the external cost of the whole society It is not appropriate to sacrifice justice and efficiency for protection of justice of individual case

Date of Award	2020
Original language	English
Supervisor	Jing-Huey Shao (Supervisor)