The theory of efficient breach states that it is socially useful to breach a contract whenever the breach would leave no party worse off, while leaving at least one party better off. In other words, economic analyses of breach are mainly concerned with situations in which breach is Pareto-superior, rather than just overall profit-maximizing. In contrast with moral theories that hold that breach of contract is morally wrong insofar as it requires one party to break a promise, the economic view regards the contractual obligation as an obligation either to perform or to pay damages in an amount equal to the expected benefit of performance.
)