What is a material breach of contract?

A material breach of contract is an event or failure to act that results in one party not fulfilling their obligations under the contract. This can be serious enough to effectively end the contract. Such a breach can be actual or constructive. Actual breaches occur when a party fails to fulfill their obligations as stated in the contract. Constructive breach occurs when a party acts in a way that makes it impossible for the other party to fulfill their obligations under the contract. In North Carolina, when a breach of contract does occur, the non-breaching party can pursue various types of legal remedies. One is the right to sue for damages. The non-breaching party can seek reimbursement for any losses suffered as a result of the breach. They may also be entitled to an award of punitive damages if the breach was particularly egregious. The other option is to seek specific performance. In that case, the court can order the breaching party to take the action they had agreed to in their contract. If they fail to do so, they can be held in contempt of court. In some cases, a breach of contract may not be material enough to completely invalidate the contract. Instead, the court may deem the breach as minor and only require the breaching party to pay for any losses caused by the breach. In those cases, the non-breaching party may still be able to seek some compensation, but won’t necessarily be able to collect the full extent of their damages.

Related FAQs

What is a warranty in a contract?
What is the effect of illegality in a contract?
What is the Statute of Frauds applicable to?
What are the legal remedies for a breach of contract?
What is an exculpatory clause?
What is frustration of purpose?
What is the doctrine of frustration in a contract?
What is the effect of an anticipatory breach?
What is a valid offer?
What is a creditors’ rights clause?

What is a material breach of contract?

Related FAQs

Related Blog Posts