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Hypothetical Efficiency Is Not Grounds For Breach, Daniel M. Isaacs

West Virginia Law Review

The law does not approve of the efficient breach of contract; it merely provides or fails to provide remedies. Although there are situations where the law implies contract terms, there is no basis for an implied covenant of efficiency. Hypothetical contracts, purporting to incorporate a release where the cost of performance to the promisor exceeds its value to the promisee, cannot be used to bind people to results, even efficient ones, to which they did not agree. Where it is inefficient to demand performance, flexibility should come from the promisee who, having received in trust the power to limit the …