Abstract: The jurisprudence of economical analysis evaluates the validity of contract according to economical efficiency. Based on Coase’s theory and Holmes’s classical contract risk theory, the jurisprudence of economical analysis proposes the theory of efficient breach. The contract theory of the jurisprudence of economical analysis has been criticized for its individualism and instrumentalism. The theory of efficient breach, which explains rights according to efficiency, may hurt people’s substantive rights and then break the balance of the legal system. There are also fallacies in terms of ethnics in this theory. The compensation of damage to expected benefits is insufficient to remedy the loss of the party concerned, and even brings greater social cost. However, the contract theory of the jurisprudence of economical analysis gives us the following enlightenment: legal research can’t be independent of other branches of learning such as economics and more attention should be paid to the efficiency value of contract law.

Key words: jurisprudence of economical analysis, contract, efficient breach