عنوان مقاله [English]
“Efficient breach” is one of the most controversial concepts in the economic analysis of contract law. According to this theory the contracting party should be encouraged to breach a contract and pay damages if doing so would be more efficient than performance. In this article, attempt has been made to analyse this issue from the perspective of Iranian civil law.
This article draws on on analytical method and argues that on the one hand, "pacta sunt servanda" as a rational rule underpins the specific performance, which is purportedly in conflict with the efficient breach theory, and on the other hand, the efficient breach theory is based on a logical rule. Therefore, specific performance as a rational rule cannot rule out the efficient breach as another rational rule. This due to the assumption that an irrational interpretation cannot be drawn from a rational rule.
In conclusion, the authors argue that by adopting a different approach to the principle of pacta sunt servanda, the theory of efficient breach can be accepted under Iranian law. Nevertheless, in view of the fact that Iranian legal system suffers from a severe lack of full compensation system, this theory in Iranian law should be applied diligently.