Efficient breach
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. Development of the theory The theory of efficient breach seeks to explain the common law's preference for expectation damages for breach of contract, as distinguished from specific performance, reliance damages, or punitive damages. According to Black's Law Dictionary, efficient breach theory is "the view that a party should be allowed to breach a contract and pay damages, if doing so would be more economically efficient than performing under the contract." Expectation damages, according to the theory, give parties an incentive to breach when and only when performance is inefficient. Judicial laws that govern contractual agreements and the damages to be incurred upon the breach of an agreement have existed since the 15th century. The motivating factor for establishing the standards of efficient breach was to ensure that the agreement fell under the enforceable fixing of the damages by the execution. this, therefore, stated that there should be a prior forecast or prediction of the provable injury resulting to the breach, otherwise, the breach