A contract is a legally enforceable agreement between two or more parties to do something or fail to do something. A breach of contract occurs when a party fails to do or not do something according to the terms of the agreement. A contract breach can be anticipatory, minor, or material.
A minor breach is a failure to complete a minor, nonessential part of a contract. Although the breaching party failed to complete the minor part, the contract can still be completed.
With a material breach, the breaching party failed to complete a term that is essential to the satisfactory completion of the contract. Due to this material breach, the contract cannot be completed.
The main difference between a minor breach and a material breach is the severity of the breach of the contract. A material breach is so severe that it makes completing the contract either impossible or pointless. Conversely, a minor breach is so insignificant that the rest of the contract can be completed to a generally satisfactory result.
The non-breaching party can sue for damages caused by the minor breach. However, the minor breach does not excuse either party from further performance. In other words, in the event of the minor breach, both the breaching party and the non-breaching party must continue to fulfill the rest of the contract.
Once one party commits a material breach, the non-breaching party can stop its own performance on the contract. The non-breaching party can also sue the breach party for any damages caused by the breaching party.
To determine whether a breach was material or minor, contact a business lawyer. The lawyer will explain the type of breach, your remedies, and how to proceed with resolving the contract dispute.
Last Modified: 12-29-2015 11:30 PM PSTLaw Library Disclaimer
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