What is referred to as a material breach in a contract?

A material breach in a contract occurs when one party fails to fulfill a significant aspect of the agreement, thus undermining the very essence of the contract. This type of breach allows the non-breaching party to seek remedies that may include terminating the contract and filing for damages. The significance of this definition hinges on the fact that not all breaches are considered material. For example, minor delays in project completion do not typically amount to a material breach, as they generally do not affect the contract's overall purpose. Similarly, negotiations for new terms or resuming work after a temporary halt do not inherently indicate a failure to comply with the contract’s main obligations. Therefore, a material breach specifically refers to a violation that disrupts the fundamental intent of the contractual agreement and justifies the aggrieved party's reaction.