Commercial Terms
A failure to perform that is serious enough to defeat the purpose of the contract.
A material breach is a violation of a contract significant enough to go to the heart of the deal, as opposed to a minor or technical slip. Delivering nothing at all is material; delivering a day late when time was not critical usually is not. The distinction matters because a material breach is what typically gives the other side the right to terminate and to seek damages.
Whether a breach is "material" is a judgment call that can turn on the specific facts and the governing law. Well-drafted contracts reduce the guesswork by defining certain failures as material and by requiring notice and a chance to cure before termination kicks in.
Related terms
The ending of a contract before or at the natural close of its term.
Statements of fact each party makes and stands behind, which the other relies on in signing.
A fixed amount the parties agree in advance will be owed if the contract is breached.
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