Here is what I did before I got this error:
Yes above comment is right that worked for me.
EntityFramework.dll needed to be in the GAC for Visual Studio to use it from the package manager.
1. Start Visual Studio Command Prompt (ensure you started Visual Studio as Administrator)
2. Go to your packages directory and find the EntityFramework package directory.
3. Go to lib\net45 (if targeting 4.5)
4. type: gacutil /i EntityFramework.dll
Note: It may be wise to restart the computer entirely at this point.
C:\Windows\system32>cd..
C:\Windows>cd..
C:\>cd \packages\EntityFramework.5.0.0\lib\net45
C:..\packages\EntityFramework.5.0.0\lib\net45>
gacutil /i EntityFramework.dll
This will definitively works.