Economic Efficiency in Private Law; Theory and Instances

The objectives of legal rules have traditionally been grouped under two major titles of order and justice. In modern law, in light of new demands and the experiences of other legal systems, other principles and objectives, such as legal certainty and efficiency, have been proposed for legal rules. Efficiency, with its rational foundations and structure, along with justice, can play a substantial part in fulfilling the responsibilities of any legal system. Efficiency, through its rational perspective, and justice, by means of its largely spiritual and idealistic basis, can deal with the organization of rules and the relationships among different individuals in a society. Efficiency, along with the traditional bases of legal rules, such as justice, can result in the fulfillment of the roles of a legal system, while on the other hand, may lead to conflicts between them. Efficiency can be utilized in the establishment of rights and commitments, their optional or compulsory fulfillment and the settlement of disagreements as well.