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:
“As machines become more and more efficient and perfect, so it will become clear that imperfection is the greatness of man.”
—Ernst Fischer (1899–1972)
“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)