What is a material breach of contract?

A material breach of contract is a violation of the agreement between two parties that is significant enough that it compromises the purpose of the contract. In California, a material breach of contract is typically defined by the contract itself. In order to determine if a breach of contract is material, courts will examine the nature and extent of the breach and assess the seriousness of the breach in terms of the terms of the contract. If the violation is so bad that it defeats the purpose of the agreement, then it will likely be considered a material breach of contract. In California, remedies for a material breach of contract can range from financial compensation to specific performance or rescission – or canceling – the contract. If one party materially breaches the contract, the other party can choose to sue for breach of contract, in which case, the court would decide the appropriate remedy. In conclusion, a material breach of contract is more than just a disagreement between two parties; it is a violation that is significant enough to compromise the purpose of the agreement. Courts in California will examine the circumstances of the breach to decide if it qualifies as a material breach, and if so, which remedies should be offered.

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