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: Delaware Corporate and Commercial Litigation Blog

Professor Bainbridge on "Efficient Breach" Theory of Contract and Related Moral Issues

By Francis G.X. Pileggi

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Professor Bainbridge discusses the "efficient breach" theory of contract law, and related moral issues that it may raise, in a post here.

The Delaware Court of Chancery, in its recent Nacco decision, summarized here, observed at page 61 of the slip opinion that Delaware recognizes that theory. In the Nacco case, the Court mentioned the theory in the context of discussion noting that contract provisions will prevail to bar tort liability as provided in the terms of an agreement.

Full post as published by Delaware Corporate and Commercial Litigation Blog on January 20, 2010 (boomark / email).

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