![]() Al intended to create a safer parking lot for his employees, the underlying reason he hired Bob. By installing the low grade grip-cover, Bob has committed a material breach of his contract with Al. Instead, Bob installed a low grade grip-cover that shines and looks sharp however, the low grade grip-cover is slippery and dangerous for Al’s employees. Al hired Bob, via contract, to install a high-grade grip-cover over his parking lot for the safety of Al’s employees. ![]() Hypothetical…Al and Bob…Īl owns a small business, and would like to install a safer parking lot for his employees. Notably, a non-material breach is still a breach that will result in liability, but one that will likely result in limited legal consequences for the breaching party. ![]() In comparison, a non-material breach is a failure to perform that involves minor details thus, a minor breach does not affect the underlying purpose of the agreement in a substantial way. Generally, the legal test to determine whether there was a material breach is whether the non-breaching party received the “substantial benefit” of the bargain. Oftentimes, we hear the words, “material breach.” A material breach is nonperformance that reaches to the heart of the agreement, the underlying purpose of the contract. A breach of contract occurs when one party fails to perform, resulting in legal consequences for the breaching party.
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