What constitutes a "material breach" of contract?

A "material breach" of contract occurs when one party fails to fulfill a significant part of the contract, undermining the transaction's core purpose. This type of breach allows the non-breaching party to terminate the contract and seek remedies, as the breach substantially affects their ability to receive the benefits they anticipated from the agreement.

In contrast, a minor violation that does not affect overall performance is not considered material and typically does not provide grounds for termination. A mutual agreement to change contract terms reflects a collaborative alteration between parties, which does not relate to breaching the original contract. Similarly, a delay may constitute a breach but not necessarily a material one unless it significantly impacts the contract's fundamental objectives. Therefore, the correct choice focuses on the serious nature of the violation, which justifies the termination of the agreement.