Research On The Efficient Breach

Efficient breach is one of the theories of the contract that the law will allow the party to breach the contract if the benefits from the non-performance are higher than performance of the contract. It is a new theory of the breach of contract, based on the economic analysis of law. Even though the Roman-Germanic Law has not accepted this theory till now, we cannot deny the value of it in the judicial theory and practice .This theory is a reasonable outcome by the developing of the contract law. It breaks the limit by the traditional contract theory of the Roman-Germanic Law, and brings the concept of the"Efficiency"from economics into the contract law field, and remedies the deficiency of the single analysis method used in the law.This dissertation analyses the practical value of this theory by searching the academic origin, evaluating in the economics field and law field, and gives a simple representation about how to put this theory into practice in the judicature of our country. Besides the preface and conclusion sections, this dissertation is divided into three chapters.Chapter One introduces the foundation and gist of the theory of efficient breach. The efficient breach is a new theory in breach of contract, put forward by the Jurisprudence of Economic Analysis, and based on the neutrality in moral and the compensatory in the liabilities for breach of contract. Chapter Two analyses the value of the theory in both economics filed and law field. First, it proves that the theory is reasonable by analyzing the cost-benefit of the breaching action. Second, it evaluates the social value of contract breach from this aspect: the social benefit. At last, it explains the juristically value of breach of contract by analyzing the relationships between justice and efficiency.Chapter Three represents the value for the contract law in China, and suggests enhancing the liability for breach of contract by reference to the efficient principle and economic analysis method in efficient breach.