A breach of contract occurs when one party is unable to perform their agreed upon duties in accordance to a legally binding contract. As Sarasota construction attorneys, we know that a contract can be breached by one or all parties, and that there may be legal consequences for the breaching party. A breach of contract can be either material or non-material depending on the nature of the breach, and in this article we will be discussing material breaches.
What Is A Material Breach of Contract?
A material breach of contract is when a party’s failure to perform is a major part of the contract. This means that the breach is substantial and prevents the contract from being finished and/or ruins the purpose of the contract. In the case of a material breach of contract, the non-breaching party, is no longer obligated to carry out their end of the agreement.
An Example of a Material Breach of Contract
Let’s say a homeowner contracts a utility contractor to install a 24-inch ductile iron pipe, and the utility contractor installs an 8-inch ductile pipe instead. An 8-inch water line will not carry the same amount of water as the 24-inch pipe, therefore making this a material breach of contract. With this example, the homeowner may be justified in ending the contract and recovering damages.
How to Determine if a Material Breach of Contract Occurred
To determine of a breach contract is material or not, you must look at whether:
- The non-breaching party can be reimbursed for the breach
- The non-breaching party is deprived of substantial benefit
- The breaching party’s behavior matches the standards of good faith
- The breaching party shows intent to fix their error to complete the agreement correctly
Are There Any Legal Consequences Of Material Contract Breaches?
In the case of a material breach of contract, the non-breaching party:
- May be excused from performing their duties in the contract and may even stop their duties as soon as a breach is suspected
- May sue the other party and recover any damages
To schedule a consultation with an experienced Sarasota construction attorney from Cotney Attorneys & Consultants, please call us today.
