The Research On The Theory Of Efficient Breach

Efficient breach is also called"a breach of efficiency". This theory is a new one of breach brought up by the scholars of economic analyzing of law in America. It is still based on breach, but it contains the idea of efficiency in economics. The theory of efficient breach means that the interests the breaching party will get from his breach are more than the interests he would have got from his performance to the other party of the contract; or when the cost of performance is more than the interests both the two parties of the contract would have got, the breach of the contract will be more efficient than the performance of the contract. The most difference between efficient breach and other breach is that efficient breach uses the method of economic analysis to deal with the breach and provide the remedy. The article makes an analysis of the efficient breach of common law, and thinks of the hurdles and the possibility of civil law absorbing the theory in order to use for reference its principle of efficient and benefit and the methods of economic analysis to get over the limits of statute law and provide a new idea to improve the theory of breach liabilities in our contract law.