Altruism and Efficiency a. Some economists identify a doctrine of efficient brea

Question

Altruism and Efficiency

   a. Some economists identify a doctrine of efficient breach: “If it is cost-effective for one party to a contract to break it, that party should ignore the contact and pay the price” (p. 64). What impact would following such a rule have on business and other relationships shaped by contracts?

**** please need your own thought in around 25 words not copy/paste from google.

below is the link of pdf

https://drive.google.com/file/d/0B7PCq1yNZjIINWxfVWNUQmZMNDA/view?usp=sharing

Explanation / Answer

Doctrine of efficient Breach

We know that the thoery of efficient breaches are used to make contracts btween two parties. The economic relation is not always moral one. So the doctrine of efficient breach used in economics in the sence that If party A is better off for breaching the contracts he must pays the damages cost for B. But in this they must be considered as one economic unit. In the doctrine of efficient breach to breach the contracts is efficient than to cont6inue. It will lead the better off the society. The law is actually from the case of economic relationships. It will shapen the economic realtionship between two parties. If one person is suffering from breaches is better than to better off whole society in the economy.

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