In legal theory, particularly in law and economics, efficient breach is a voluntary breach of contract and payment of damages by a party who concludes that they would incur greater economic loss by performing under the contract.
Read more about Efficient Breach: Development of The Theory, Posner's Illustration, Criticism
Famous quotes containing the words efficient and/or breach:
“The really efficient laborer will be found not to crowd his day with work, but will saunter to his task surrounded by a wide halo of ease and leisure.”
—Henry David Thoreau (1817–1862)
“Good manners, to those one does not love, are no more a breach of truth, than “your humble servant,” at the bottom of a challenge is; they are universally agreed upon, and understand to be things of course. They are necessary guards of the decency and peace of society.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)