Should Material Breach Be Defined?

In contract law, a "material" breach of contract is a breach (a failure to perform the contract) that strikes so deeply at the heart of the contract that it renders the agreement "irreparably broken" and defeats the purpose of making the contract in the first place.

Does material breach need to be defined?

Shortly after Mobileciti, the Supreme Court of NSW had to consider the meaning of "material breach" in the context of a lease. ... His Honour observed that a material breach did not need to be fundamental and that the focus should be on the materiality of the breach rather than the materiality of the obligation¹⁰.

What is considered a material breach?

A material breach occurs when one party receives significantly less benefit or a significantly different result than what was specified in a contract. Material breaches can include a failure to perform the obligations laid out within a contract or a failure to perform contracted obligations on time.