Efficient Breach in Bilateral Contracts and Incentives Theory

Juliana Tiemi Mizumoto Akaishi

Abstract


This paper proposes efficiency enhancing strategies in bargaining contexts where one of the parties has an incentive to breach a bilateral contract previously established.  The efficient breach doctrine is critically compared with the Incentives Theory in search of a socially desirable outcome, that is, efficiency enhancing.


Keywords


Efficient Breach; Bilateral Contract; Incentives Theory



DOI: http://dx.doi.org/10.18836/2178-0587/ealr.v1n2p241-253

Economic Analysis of Law Review  -  ISSN 2178-0587

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