Material Breach In Construction
Description
How to fill out Arizona Notice Of Material Breach Of Lease Agreement?
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FAQ
Breach of contract means that one party did not do what they promised to do in the agreement. A party who breaches a contract can be held legally responsible for damages. Most often, in construction contract cases, damages can include money for the party who suffered a loss or was injured by the breach.
To determine whether a breach of contract is material, find out if compensation is a reasonable remedy. If the injured party can simply be compensated for the breach, it is unlikely that it would be found to be a material breach. Compensation, in this case, can be in the form of money or service.
A material breach occurs when one party receives significantly less benefit or a significantly different result than what was specified in a contract. Material breaches can include a failure to perform the obligations laid out within a contract or a failure to perform contracted obligations on time.
A material breach is one that is substantial. It permits the non-breaching party to suspend performance and ultimately terminate the contract. A minor breach, on the other hand, does not allow for suspension or termination of the work or payment.
One example may occur when someone is purchasing a house. If the buyer completes all of the necessary paperwork, pays the seller at the closing, but the seller suddenly decides not to sell or refuses to give up the deed and keys to the house, then this would be considered a material breach of contract.
