If a violation of contract is deemed serious enough to destroy its value, it is considered what?

A violation of contract that is serious enough to destroy its value is referred to as a material breach. This type of breach occurs when one party fails to perform their contractual obligations in a significant way, which undermines the essence of the agreement and deprives the other party of the benefits they were supposed to receive.

In cases of material breach, the non-breaching party typically has the right to terminate the contract and seek damages, as it fundamentally alters the terms of the agreement. This is crucial for enforcing contracts, as it delineates between minor infractions, which may only warrant a remedy or minor compensation, and serious breaches that call into question the very purpose of the contract itself.

Understanding the implications of a material breach is vital for contractors, as it impacts not only legal standings but also business relationships and future dealings.