A Study Of Efficient Breach

The theory of efficient breach is very important in the economic analysis of contract law, and it’s also an important legal system of common law system countries. But there has been a debate on it in the academic field since the day it was born, and it has become a long-standing hot research topic in the world.The dissertation holds the point that the theory has its rationality from the view of economic analysis and legal value based on the case study and economic analysis. Since the system of efficient breach is the core part of remedy system of breach, it interiorizes the external costs of breach by distributing the cooperative surplus of efficient breach. So the system maximizes social wealth by allotting cooperative surplus, and China is in the period of profound institutional changes social transform. So we are facing the challenges to absorb, understand, judge and enhance, and we are also facing the problem of how to transform and operate from theory to practice in the light of concrete condition.A well organized society is efficient, and the efficiency which is pursued by law economists is to be obtained by minimizing the cost to realize the wealth maximum, and to achieve the goal of justice. Justice is realized on the premise of efficiency. Only if the cake of social wealth is made big enough by allocating the resources effectively, can justice be realized.