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)
“But to my mind, though I am native here
And to the manner born, it is a custom
More honored in the breach than the observance.”
—William Shakespeare (1564–1616)