# Efficient Breach Theory Contract Agreement
**This Contract Agreement ("Agreement") is entered into as of [Date], by and between:**
**Party A:** [Full Legal Name of Party A]
**Address:** [Address of Party A]
**City, State, Zip Code:** [City, State, Zip Code of Party A]
**and**
**Party B:** [Full Legal Name of Party B]
**Address:** [Address of Party B]
**City, State, Zip Code:** [City, State, Zip Code of Party B]
### 1. **Purpose**
The purpose of this Agreement is to outline the terms and conditions under which both parties may freely assess the benefits of performance versus breach of this Agreement, in accordance with the principles of the efficient breach theory.
### 2. **Definitions**
- **Efficient Breach**: A breach of contract that occurs when the party finds it more economically beneficial to breach the contract and compensate the other party for the loss than to perform the obligations set forth.
- **Performance**: The fulfillment of the obligations described within this Agreement.
### 3. **Obligations of Parties**
- **Party A Responsibilities**:
- [List specific obligations of Party A]
- **Party B Responsibilities**:
- [List specific obligations of Party B]
### 4. **Compensation for Breach**
In the event of a breach, the breaching party (the "Breaching Party") agrees to compensate the non-breaching party (the "Non-Breaching Party") according to the following terms:
- A payment of [specify amount or formula for damages] shall be made to the Non-Breaching Party within [specify time frame].
### 5. **Notice of Breach**
The Non-Breaching Party shall provide written notice of breach to the Breaching Party within [specify time frame] of becoming aware of said breach. The notice shall include:
- A description of the breach.
- The expected compensation as outlined in Section 4.
### 6. **Right to Cure**
The Breaching Party shall have the right to cure the breach within [specify duration] from the receipt of the notice. If the breach is cured to the satisfaction of the Non-Breaching Party within the designated cure period, no compensation shall be due.
### 7. **Termination**
Either party may terminate this Agreement with written notice should the other party fail to comply with the obligations outlined in this Agreement after the cure period.
### 8. **Governing Law**
This Agreement shall be governed by and construed in accordance with the laws of the State of [Specify State].
### 9. **Entire Agreement**
This Agreement constitutes the entire agreement between the parties and supersedes all prior understandings, whether written or oral, regarding the subject matter herein.
### 10. **Amendments**
Any amendments to this Agreement must be in writing and signed by both parties.
### 11. **Counterparts**
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
**IN WITNESS WHEREOF, the parties hereto have executed this Efficient Breach Theory Contract Agreement as of the date first above written.**
_________________________
**[Name of Party A]**
**Title:** [Title, if applicable]
**Date:** [Date]
_________________________
**[Name of Party B]**
**Title:** [Title, if applicable]
**Date:** [Date]
---
### Notes:
- Please consult with a legal professional to ensure compliance with local laws and to tailor this document to your specific situation.
- Fill in the placeholders with the relevant information pertaining to the parties involved and the specific terms of the agreement.