Breach vs. Materially Breach

Attribute	Breach	Materially Breach
Definition	Violation of a legal obligation or duty	Significant violation that goes to the root of the contract
Impact	Can vary in severity	Usually results in termination of contract
Consequences	May lead to legal action or damages	Often results in termination and damages
Remedies	May include specific performance or damages	Termination of contract and damages

Definition

When it comes to contracts, breach refers to a failure to perform a duty or obligation that is outlined in the agreement. This can include not delivering goods or services as promised, not paying for goods or services, or not meeting any other terms specified in the contract. On the other hand, a material breach is a more serious violation of the contract that goes to the heart of the agreement. It is a breach that is so significant that it essentially renders the contract unenforceable.

Impact

One key difference between breach and material breach is the impact they have on the contract. A breach can be minor or major, depending on the specific circumstances. In some cases, a breach may be remedied through negotiation or by seeking damages. However, a material breach is much more severe and can lead to the termination of the contract. This is because a material breach goes to the core of the agreement and undermines the entire purpose of the contract.

Remedies

When a breach occurs, there are several remedies that may be available to the non-breaching party. These can include seeking damages, specific performance, or cancellation of the contract. In the case of a material breach, the non-breaching party may have the right to terminate the contract and seek damages for any losses suffered as a result of the breach. This is because a material breach is considered to be so serious that it essentially nullifies the contract.

Intent

Another key difference between breach and material breach is the intent of the party that is in violation of the contract. In some cases, a breach may be unintentional or the result of extenuating circumstances. However, a material breach is typically seen as a deliberate and willful violation of the contract. This can have serious consequences for the party that is found to have committed a material breach, as it may be seen as acting in bad faith.

Legal Consequences

From a legal perspective, breach and material breach have different consequences. A breach may result in the non-breaching party seeking damages or specific performance to remedy the situation. However, a material breach can lead to the contract being declared void and unenforceable. This means that the parties are no longer bound by the terms of the agreement and may seek damages for any losses incurred as a result of the breach.

Examples

To better understand the differences between breach and material breach, consider the following examples. If a contractor fails to complete a project on time, this may be considered a breach of the contract. The non-breaching party may seek damages for any losses incurred due to the delay. However, if the contractor abandons the project halfway through and fails to deliver any work, this would likely be considered a material breach. In this case, the non-breaching party may have the right to terminate the contract and seek damages for the incomplete work.