Different Types Of Breaches Of Contracts

Posted on May 29, 2017 · Posted in business litigation, contracts, employment law

Not all contract breaches are created equal. There are  two main types of contract breaches. A contract can be breached by one or more of the parties named in the contract and although not always, there may be legal consequences for breaching the contract.

Material Breach:

A material breach occurs when one party fails to execute a major part of the contract. The breach is both substantial and either prevents the contract from being completed or defeats the purpose of the contract altogether.

In looking at a breach to determine if it is material or non-material, the non-breaching party must be deprived of substantial benefit and cannot be properly compensated for the breach. Furthermore, it is important to look at if the breaching party is attempting to remedy the situation or not.

If there is a material breach, the other party may sue immediately to recover damages and will be released of the duty to uphold their end of the contract.

Non-Material Breach:

A non-material breach, on the other hand, is when a party fails to complete a lesser part of the contract, but the contract can still be completed. Oftentimes, a non-material breach is not worth pursuing a lawsuit, although it is not impossible. The non-offending party must still perform their part of the contract.

Any type of breach can be harmful to you and it is best to seek out an experienced contract lawyer who can discuss your options with you. At Doumar Martin, our experienced contract attorneys will be happy to meet with you. Call today for your initial consultation.