Minor Breach

Definition

A minor breach in a contract refers to a violation of a contractual term that is relatively insignificant and does not substantially deprive the non-breaching party of the benefit they expected from the agreement. Unlike a material breach, a minor breach does not justify the non-breaching party in terminating the contract or suspending their own performance.

5 Must Know Facts For Your Next Test

1. A minor breach does not justify the non-breaching party terminating the contract or suspending their own performance.
2. The non-breaching party in a minor breach is still entitled to damages, but the damages will be limited to the actual loss suffered.
3. Courts will look at the totality of the circumstances to determine whether a breach is minor or material, considering factors like the importance of the term breached and the degree of non-performance.
4. The doctrine of substantial performance may apply in cases of minor breach, allowing the breaching party to still recover on the contract if they have substantially performed their obligations.
5. Factors that may contribute to a breach being considered minor include the unintentional nature of the breach, the ease of cure, and the lack of significant harm to the non-breaching party.

Review Questions

• How does a minor breach differ from a material breach in a contract?
  • The key difference between a minor breach and a material breach is the severity of the breach and the remedies available to the non-breaching party. A minor breach is a relatively insignificant violation of a contractual term that does not substantially deprive the non-breaching party of the expected benefit. In contrast, a material breach is a serious violation that justifies the non-breaching party in terminating the contract and/or suspending their own performance. While the non-breaching party in a minor breach can still recover damages, they cannot treat the contract as terminated or refuse to perform their own obligations.
• Explain how the doctrine of substantial performance relates to cases of minor breach.
  • The doctrine of substantial performance allows a party to recover on a contract even if they have not fully complied with all of the contract's terms, as long as they have substantially performed their obligations. This doctrine can be particularly relevant in cases of minor breach, where the breaching party may have substantially performed the contract but committed a relatively insignificant violation of a contractual term. Under substantial performance, the breaching party may still be able to recover on the contract, though the non-breaching party would be entitled to damages for the minor breach.
• Analyze the factors a court would consider in determining whether a breach is minor or material.
  • When determining whether a breach is minor or material, a court will consider the totality of the circumstances, looking at factors such as the importance of the term that was breached, the degree of non-performance, the intent behind the breach, the ease of cure, and the harm caused to the non-breaching party. A minor breach is one that does not substantially deprive the non-breaching party of the benefit they expected from the contract, while a material breach is a significant violation that justifies termination. The court will weigh these various factors to assess the severity of the breach and the appropriate remedies available to the non-breaching party.

Related terms

Material Breach: A material breach is a violation of a contract that is significant enough to justify the non-breaching party in terminating the contract and/or suspending their own performance.

Substantial Performance:

The doctrine of substantial performance allows a party to recover on a contract even if they have not fully complied with all of the contract's terms, as long as they have substantially performed their obligations.

Damages:

Monetary compensation awarded to the non-breaching party in a contract dispute to make them whole and compensate them for their losses.