The person who hired the contractor would have different legal options available of differing severity in each situation.

However, if the home was built as agreed upon but it was painted light blue instead of medium blue, that would likely be considered a non-material breach of contract. If the contractor refuses to move forward with building the home, that would be considered a material breach of contract. This type of breach will strike at the central meaning of the contract, involving a failure to perform the essence of the contract and rendering the agreement irreparably broken.Ī non-material breach of contract means that one of the minor details, ancillary provisions, or smaller terms of the agreement have been broken, but does not affect the root or heart of the contract.įor example, in simple terms, a person could make a contract with a building contractor to build a new home. In basic terms, a material breach of contract is a significant failure to fulfill obligations according to the terms of the agreement. Understanding Material & Non-Material Breaches of Contract If you have agreed to a contract and suspect that the other party is failing to fulfill their obligations, a Glendale business lawyer can examine the situation and help you understand your legal options. It’s important to recognize the difference between material and non-material breach of contract, which will greatly affect the options that are available to you. However, a failure to fulfill one of the requirements does not automatically create a breach of contract that would enable the aggrieved party to cancel the contract or regain their financial losses. Material or Non-Material Breach of ContractĬontracts frequently contain a multitude of specific terms and may impose many types of requirements upon each party who chooses to agree to the terms. Additionally, depending on the circumstances, the aggrieved party may be relieved of the requirement to fulfill that party’s portion of the contract.

Taking legal action against the other party can compel fulfillment of the contract or recover financial losses that may have occurred as a result of the broken agreement. The aggrieved party can respond to breach of contract by working with an Arizona contract or litigation lawyer. In addition to frustration and disappointment, breach of contract can lead to damaged relationships, loss of trust between the parties, small or large financial losses, business reputation loss, and much more. In legal terms, this failure to fulfill a contract is called “breach of contract”. But sometimes, one party to the contract fails to honor the agreement. Most of the time, contracts are fulfilled and both parties are happy with the outcome of their arrangement. You probably know that a contract is a written document outlining legal obligations that are agreed upon and must be fulfilled by the parties to the agreement. Non-Material Breach Of Contract: What Are The Differences? Understanding How Breaches Of Contract Occur in Arizona

Non material breach of contract example