material breach

a significant breach of contract that goes to the foundation of the agreement. In the world of contracts, a breach may be measured in degrees as to its effect on the contract as a whole. A material breach is a status designation for that degree of breach which undermines the entire agreement. It may help to compare material breach to minor breach which is a breach of lesser degree. Whether or not a particular situation rises to the level of a material breach is a matter for lawyers and judges. Nevertheless, the astute reader of this dictionary should understand that a material breach generally excuses the non-breaching party from any further obligation.

Fiona's niece Sheila is to be married. Sheila contracts with a local bakery to provide the wedding cake, which is to be delivered to the reception hall. On the day of the event, however, the delivery person has an accident and fails to deliver the cake. The bakery has committed a material breach of the contract.