What differentiates a material breach from a minor breach in a contract?

A material breach significantly undermines the contract's essential purpose, allowing the non-breaching party to pursue legal remedies. This type of breach occurs when one party fails to fulfill a substantial part of their contractual obligations, thereby permitting the other party to terminate the contract or seek damages. Essentially, the extent of the breach matters; a material breach warrants a more severe response because it substantially deprives the non-breaching party of what they contracted for.

In contrast, a minor breach does not excuse the other party from their obligations under the contract; instead, it may lead to a claim for damages without permitting termination of the entire agreement. Given this framework, only material breaches create significant rights for remedies, signifying the gravity of the failure to perform as promised. Understanding this distinction is crucial in real estate transactions, where breaches can have substantial financial and legal ramifications.