The Use of Efficient Breach of Contracts in the Automotive Cluster of Querétaro, Mexico

Abstract

Efficient breach is the idea that voluntarily breaching a contract could be economically advantageous for all the parties involved, as long as damages are paid to the non-breaching party. This vision is based on an economical perspective, but it fails to take into account other considerations within commercial relations. This article is the result of a research project in which interviews were performed to people involved in the automotive industry in the state of Querétaro, Mexico. The aim was to discover whether efficient breach is, in fact, used by merchants in the automotive cluster and the perspective that they have over this figure.