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Simple English definitions for legal terms
material breach
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A quick definition of material breach:
A material breach is when someone breaks a promise they made in a really big way. It's so bad that the person who was supposed to benefit from the promise can decide they don't want to keep going with the agreement. They can also sue the person who broke the promise for money to make up for what they lost. A material breach is different from a small breach, which might not be a big enough deal to cancel the whole agreement.A more thorough explanation:
Definition: Material breach refers to a violation of a contractual obligation that is significant enough to allow the affected party to consider the breach as total, which means that the party is excused from further performance and can sue for damages.
For instance, if a company hires a contractor to build a house, and the contractor fails to complete the project on time or uses substandard materials, it would be considered a material breach of the contract. The company can then terminate the contract and sue the contractor for damages.
Other types of breaches include:
- Anticipatory breach: A breach caused by a party's anticipatory repudiation, which means that the party indicates that they will not perform when performance is due.
- Partial breach: A breach that is less significant than a material breach and gives the affected party the right to damages but does not excuse them from performance.
- Passive breach of contract: A failure to perform the requirements of a contract.
It is important to note that every breach gives rise to a claim for damages, and the injured party may also have other remedies. However, if the breach is trifling, the court may choose to ignore it, and no claim arises.