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Material & Nonmaterial Breach of Contract

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What is the difference between a material breach of contract and a nonmaterial breach of contract?

What are some examples of legal and equitable remedies available for breach of contracts?

What are some legal excuses for nonperformance or other grounds for discharge of contracts? Provide examples.

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Solution Summary

The difference between a material branch of contracts and a nonmaterial breach of contracts are examined. The legal excuses for nonperformance or other grounds for discharge of contracts are determined.

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Breach of contract happens when one party fails to perform the duties as they are specified within the contract. It may be breached by either of the parties and this can lead to legal consequences for the party that breaches the contract. Breaching of contracts is of two types which can either be material breach or non-material breach, depending on the nature in which the breach occurred (Material Breach, 2012).

Difference between Material Breach and Non-Material Breach of Contract:

Material breach of contract is a breach that reaches to the heart of the contract's heart subject matter and it somehow affects the outcome of the agreement in a negative way. In a material breach, the essential requirement is that non-breaching party did not receive the actual benefit of the bargain. A material breach is such that, it has an effect on the defeating party's intention in the contract. At time, if the breach seems to be unfair or in a way has gone beyond the contract terms, it is usually termed to be a material breach. Non-material breach on the other hand happens when one fails to perform a duty that involves minor details that do not affect the whole outcome of the contract. This is considered to be less serious than a material breach and is often unrelated to the subject matter of the agreement (Material Breach, 2012).

Examples of Legal and Equitable Remedies available for Breach of Contracts:

Compensatory damages that are used for monetary amounts intended to compensate the non-breaching party for the losses due to breach. It is of two types namely expectation damage that is intended to cover what the injured party is expected to receive from the contract and consequential damages that is intended to reimburse the aggrieved party for ...

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