What is a material breach of contract?

A material breach of contract is a broken promise or negligence that significantly affects the ability of a party to perform their obligations in a contract. It is considered serious enough to void the contract or give the affected party the right to seek damages. In South Dakota, a material breach of contract is defined as a failure "to perform a substantial term of the contract or prevent the other party from receiving the benefits of the contract." A material breach can occur when one party fails to do something they are contractually required to do, or when one party does something that is not allowed by the terms of the contract. Examples of a material breach of contract include failing to deliver goods or services, failing to pay for goods or services in the specified time frame, or failing to meet the standards outlined in the contract. If a party is found to have committed a material breach of contract, the non-breaching party may be able to seek damages from the breaching party.

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