efficient breach
- An occurrence in economics related to contracts, where breaching the contract and making up for the damages is considered more beneficial financially than fulfilling the terms of the contract
- The housing contractor committed an efficient breach by deciding to not complete the job and instead pay the damages, as it seemed more economically favorable to him.
- The buyer calculated that an efficient breach of the sale agreement and paying damages would be financially less costly than going through with the purchase.
- The software development company found it more profitable to make an efficient breach in its agreement with the client and pay them for the compensation instead of deploying the resources to complete the project.
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