What Does “Material Breach” Mean in a Contract?
A significant violation of contract terms that goes to the heart of the agreement and justifies termination.
Detailed Explanation
A material breach is a serious failure to perform - not a minor technicality, but something substantial that defeats the purpose of the contract. Material breaches typically allow the non-breaching party to terminate the agreement and seek damages.
What's "material" depends on context. Failing to deliver a core product is material; a typo in a report probably isn't. Courts consider factors like the breach's seriousness, likelihood of cure, and how much the other party loses.
Example in a Contract
“Either party may terminate this Agreement immediately upon written notice if the other party commits a material breach and fails to cure such breach within thirty (30) days of receiving written notice specifying the breach.”
Why It Matters
Material breach triggers termination rights and damages. If you're accused of material breach, you may have cure rights - time to fix the problem before termination. Understand what constitutes material breach in your contract.
Related Terms
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