What Constitutes a Material Breach of Contract?

At the heart of every contract are certain conditions that each party must follow. When one or more contractual parties does not abide by the obligations of the contract, a breach of that contract has occurred. There are four main types of contract breaches, and a material breach is the most serious. That is because a material breach permanently breaks the contract.

A material breach of contract causes irreparable damage that makes it impossible to continue the contract. The material breach refers to one or more parties failing to perform the contract. The breach goes to the very heart of the contract itself.

Suppose you have the architectural designs for a particular home that you want to build. You could pay a contractor to build it, but if the contractor builds a completely different home, a material breach of contract would have occurred. In this case, there likely would be no way to continue the contract.

Other Parties Must Be Ready, Willing, and Able

Ready, willing, and able are three important factors in claiming that a material breach of contract has occurred. If you are accusing another party of a material breach, you have to be ready, willing, and able to perform your end of the bargain.

If the contractual agreement were to build a home, you could show that you provided the architectural designs, land, and money to do the job reasonably and effectively. The homebuilder might continually delay or otherwise refuse to do the project as agreed. If so, you could make a strong case for a breach of contract. The homebuilder also could not erect or place a substandard home on the property and declare the contract fulfilled.

Did Bad Faith Play a Part in the Breach of the Contract?

If the breach of contract resulted from bad faith and the case is brought to court, they will likely presume it to be a material breach of contract. On the other hand, a breach that results from negligence is less likely to be considered a material breach. In this case, it would be considered a minor breach.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You With a Contract Breach

If another party has breached a contract you are a part of, speak with one of our experienced Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. Each party involved in a contract must meet certain obligations. We can help you if another party is not following through on their end of the contract. Call us at 215-574-0600 or contact us online to schedule an initial consultation today. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.