On The Efficiency Of Breach Of Contract

The theory of efficient breach is one of the key points in contemporary of Anglo-American contract law, which is also the important view of economic analyzing of law. The main point of economic analyzing of law is that the purpose of all the legal activities and legal systems shall be how to utilize the natural resources and maximize the social wealth. In other words, efficient and benefit is the ultimate aim of all the legal activities and legal systems. Therefore, the economic analyzing of law explicitly holds that the party who breaches the contract shall be permitted to choose the way of damage-compensation instead of the way of continual performance. The article makes a full analysis to the efficient breach of Anglo-American law, and re-estimates the theory in order to use for reference its principle of efficient and benefit and the methods of economic analysis to get over the limits of statute law and in order to understand the promisor's intention to improve the theory of breach liabilities.