Efficient Breach in Bilateral Contracts and Incentives Theory

Juliana Tiemi Mizumoto Akaishi


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.


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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