A Material Breach is a failure of the Contract that is so fundamental to the purpose of the contract that it renders the Agreement irreparably broken. Also called a “Total Breach,” a Material Breach entitles the other party to the agreement to end the contractual relationship and seek legal damages in court.
Determining if a Material Breach occurs can be difficult because it requires interpretation of the Contractual Arrangement as well as an assessment of whether the other party’s actions were detrimental to the purpose of the Agreement. An experienced attorney at Lotzar Law Firm, P.C. can help you to determine if a Material Breach has occurred and can assist with the process of filing a Breach of Contract Claim. To learn more about how we can help, call or contact us today to speak with a member of our legal team.
Determining if a Material Breach Has Occurred
A Material Breach occurs if the actions of one party to the Contract make it impossible for him to fulfill his contractual obligations. The Breach must reach to the heart of the subject matter of the contract and must negatively impact the Contract’s outcome. Essentially, it must become impossible for the non-breaching party to receive the “substantial benefit” of the bargain that was made.
If one party fails to fulfill his contractual obligation in some way, the failure must be carefully assessed to determine if the failure was simply a Breach of the Agreement or whether it was a Material Breach. Considerations in determining whether the breach was material include:
- Whether the non-breaching party was deprived of the essence of what he bargained for. For example, in a contract to purchase a home, a failure of the seller to follow through with the sale would be a Material Breach. If the seller followed through with the sale but removed one of the fixtures inside of it, this would not be considered a Material Breach.
- Whether the non-breaching party may be compensated for the resulting loss. If a small amount of money can fix the problem or the breach can be resolved with minimal effort, then the breach is not generally considered a material breach. For example, the missing fixture in the sold home could be replaced for a small fraction of the house’s sale price.
- The extent of the loss to the breaching party. If the majority of the contractual obligations have been fulfilled, loss is limited and the breach likely is not material.
- Whether the breaching party can or will fix things. If it possible for the breaching party to resolve the problems and fulfill the Agreement, then the breach is not material
It is possible to take legal action for both Non-Material and Material Breach in Phoenix, although the damages will differ depending upon the circumstances. An experienced Phoenix Construction Contracts attorney at Lotzar Law Firm, P.C. can help you to understand your rights when a party to a contract fails to live up to his obligations. Call or contact us online today to get your Breach of Contract Claim started.
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