Contracts
Breach of Contract
Definition
A breach of contract occurs when a party fails to perform a contractual obligation without a valid legal excuse. A material breach goes to the essence of the agreement, excusing the non-breaching party from further performance and entitling them to damages. A minor breach entitles the non-breaching party to damages but does not discharge their duty to perform.
Example
A contractor substitutes a materially different brand of pipe than specified. Whether this is a material or minor breach depends on the significance of the deviation.