The Study On The Theory Of Efficient Breach

The efficient breach, also can be called “a breach ofefficiency” or “cost-effective default”, it is a theory ofdefault based on the Common law, it gradually developed andperfected by the judge’s constant use in the cases, itreflects the main points of the scholars of economic analyzingof law, that all the legal activities and legal system should beaimed to effective use of limited natural resources, maximizethe overall social wealth, benefit is the basic purpose of legalactivity. The theory of efficient breach expect to achieve thesecontract law goals maximum,such as reduce transaction costs,carry out private purpose, distribute social limited resourceseffectively, Since efficient breach theory has produced,scholars of both the Continental law system and the Common lawsystem have pay attention to it, some are for it, but becauseit’s produced in Common law tradition, so the scholars ofContinental law system generally are reserved to it. Chinesescholars also pay attention to the theory of efficient breach and the analysis speed is gradually speeding up. This articlewill be divided into five parts to discuss the efficient breachtheory deeply and detailly.The former two parts mainly focus on the basic theory ofefficient breach, analysis the efficient breach from manyaspects deeply and detailly, such as the meaning, history,constitutions, theoretical basis as well as the economic andlegal value of the theory, and so on.Wish to grasp this theorycomprehensive, specific, and accurately.The third part focuses on making a comparative study on thetheory of efficient breach. This part mainly analyzes thesimilarities and differences between the theory and the systemof anticipatory breach of contract、 the principle of changedcircumstances, and further reveals the theory of efficientbreach can exist independently.The fourth part mainly analysis the favorable andunfavorable factors exsisted in introducing the efficient breachtheory combined with the continental laws. Mainly explores the different provisions of France and Germany, such as the liability for breach of contract, profit recovered of breach of contract, recovered damages limits, the obligations of reduce the loss and the time standard of damage’s computation, third party’s liability, and so on.The fifth part further discusses the feasibility of the theory’s introduce according to the current situations of our country, and puts forward some simple suggestions to it’s introduce. And expects to learn the "benefit principle" referenced in this theory and "economic analysis method" embodied in it, break through the current regulations, perfect the relevant provisions of our count ry’s contract law further, seek a balance between justice and efficiency, so as to make the ultimate goals of law can be realized.