Efficient breach

{
  "id": "MLC-T-LAW-001811",
  "term": "Efficient breach",
  "field": "Law",
  "definition": "A deliberate violation of a contract by one party when the breaching party determines that paying damages to the non-breaching party is economically more advantageous than performing the contract. This occurs when the breaching party can achieve a greater profit by breaching and paying damages than by fulfilling the original agreement. The concept suggests that such breaches can lead to an overall increase in societal wealth.",
  "url": "https://mlchart.com/terminology/law/efficient-breach/"
}