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Material versus minor breach of contract

On Behalf of | Jan 10, 2022 | Real Estate Litigation |

Businesses are built on contracts and these documents are the cornerstone of many commercial dealings throughout Georgia. While most people abide by the contracts they make and follow through on their promises, some people will not perform what they agreed to leading to a breach of contract.

What is a breach of contract?

A breach of contract is essentially a failure to follow through on any part or all of what you agreed to do under the contract. Breach of contract includes not only a failure to perform altogether, but also a failure to perform in a way that meets industry standards or a breach of express or implied warranties. A breach of contract can be a minor breach or a material breach.

Material breach

A breach of contract is material in the following circumstances. First, the nonbreaching party must have received something substantially different than what they were promised in the contract due to the breach. If a breach is material, the nonbreaching party no longer must follow through on their end of the bargain and is entitled to all remedies for the breach of the contract as a whole.

Minor breach

In a minor breach of contract, the nonbreaching party still receives what they were promised under the agreement despite the breach. If the breach is minor, the nonbreaching party still must perform what they agreed to under the contract. However, they still may be eligible for damages incurred due to the breach.

Suing for breach of contract

Whether a breach is material or minor, the aggrieved party still has the right to pursue contract litigation. While the remedies for their harms may differ based on the terms of the contract and the specific breach, it may be possible to pursue the damages necessary to make you whole again.