Breach

Question 1

Rule for Breach

Answer 1

A breach occurs when a party fails to perform in a contract. The consequence of the breach will depend on the timing and magnitude of the breach. A breach is either a violation of the perfect tender rule, material breach or a partial breach (substantial performance). Therefore, in order to determine if a breach occurred, it is sufficient to determine whether a party has substantially performed the terms of the contract, because if not, the party’s breach will be material.

Question 2

What is a material breach?

Answer 2

Material breach occurs when someone fails to give a substantial performance. An actual breach occurs at the time a performance is due. When properly cured, material breaches are transformed into immaterial ones.