The Discussion On The Efficient Breach Of Commercial Contract

The Efficient Breach is one of the representatives of law and economic analysisschool of thought. As one special responsibility, the efficient breach reflects both efficiencyin principle and function in setting the resource of whole society. On basis of the efficientbreach, the party of contract makes the source of low utilization ratio flow into the higherone, and also, one of the contract parties could be free from the low efficient contract so asto prepare for the next deal. Nevertheless, the contract law of our country emphasizes toomuch performance obligation of contract. So, one of the party may be trapped in onelow-efficient contract. According to this, the obligation of undertaking on breach shouldnot only stress the making up non-breach party, but stress much on the efficiency onburden taking, for ending that low-efficient contract as quickly as possible. But the contractlaw of our country cares too much on the principle of performance as the content ofcontract. On behalf of above, the author puts up the idea of applying the efficient breachinto the business contract. Because of its own characteristics of caring about of efficiency,the actions in business need more. And, as one of the economic performances, thecommercial contracts of moral sentiments are fewer than that in civil acts. Under theanalysis of the rules of our contract law, and rules setting experience of other countries, theauthor came up with the point that using efficient breach as one way to solve thelow-efficiency contract’s breach responsibilities, so as to emphasize the efficient principlein breach burden-taking and be good for the development of our market economy.