Legal Definitions - material breach

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.