The Analysis Of The Theory Of Efficient Breach

If a party of the contract breached,both the actual loss and the benefits of the non-breaching party can be compensated,the defaulting party still can benefit from the other party,then the default is considered to be effective,this is called efficient breach.The theory of efficient breach has an important connection with the principles of contract law and basic theories of economics.Many people think that the theory of efficient breach is immoral,and it againsts the justice,cannot really reflects efficiency,efficiency default system will break the proper order.But in fact,the efficient of breach and morality can be coexistence of dynamic balance,as long as using it properly.Also,it can manifest the value of efficient breach of efficiency.However,we should realize that efficient breach still faces many difficulties in practice,which leads to the analysis of efficient breach still dominated in theory.But on the whole,the existence of efficient breach is valuable,we should improve its theoretical system,hope in someday we can be able to solve those problems,so as to enrich the practical significance of efficient breach.So far in China,more and more people know the theory of efficient breach,maybe it’s not the appropriate time to use it,even though,we should keep studying and developing on it.