efficient breach theory

Efficient breach theory is a concept in contract law that suggests breaking a contract can sometimes be more beneficial to society than fulfilling it. If a party can compensate the other while still gaining a greater benefit, it may make sense to breach the contract. This approach implies that contracts should be flexible and encourages parties to weigh the costs and benefits of their actions. Ultimately, it prioritizes economic efficiency over strict adherence to agreements, suggesting that breaches might lead to better overall outcomes in some situations.