To constitute a material breach, there should be an express and irreparable violation of the bargain of either of the parties to the extent that it defeats the purpose of the party’s willingness to contract, and the contract seems pointless. Unless and until the extent of a breach is enough to make the contract seem pointless, the breach will not be a material breach. In order to qualify as a material breach, there must be an attack by the breach on the heart of the contract. When there is a material breach, there is no obligation on the non-breaching party to fulfill the end of the bargain. The prerequisite in the formation of the contract is the inherent assumption of good faith; if there is sufficient evidence that suggests that the party is acting in bad faith, the court can presume total breach or material breach of contract. The interpretation of a breach as total or material depends on the severity of the breach. If the court has reason to believe that the breach is a negligent mistake or a situation that is out of the party’s control, then the court will not consider the breach a material breach.
Loss of the Parties
When there is a material breach, from the contractual standpoint, the breach leads to the loss of both the parties as even though the non-breaching party can fulfill the party’s obligation but owe to the commission of the material breach by the other party, the non-breaching party has no contractual obligation to fulfill the obligations. Although there is a remedy for the non-breaching party, the non-breaching party can move to court and seek monetary damages for the non-fulfillment and the breach of the contract. The calculation of loss of the parties depends on how far into the fulfillment of the contract the breach happens. If the breach happens after the fulfillment of the majority of the terms and obligations, then the breach will not be considered material or total. If the breaching party can provide enough evidence to the court that the party can repair the loss and damage, then the court will not classify the breach as a material breach.
If there is a material breach of contract, the non-breaching party can approach the court by deciding to sue the breaching party and recover loss due to the breach. The non-breaching party can also choose not to perform the contractual obligations. The non-breaching party can choose to stop performing the contractual obligations as soon as the non-breaching party has reason to believe that there is a material breach of performance. Most of the contracts have a clause that states expressly what constitutes a material breach. As a safeguard and way to avoid the court’s discretion, the parties agree to insert an express clause that states material breach and states the act that constitutes a material breach.
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