MBE Rules · Contracts
Material vs. minor breach
The rule
A minor breach entitles the non-breaching party only to damages; the contract continues. A material breach excuses the non-breaching party's performance and gives an immediate right to total damages. Factors: extent of benefit received, adequacy of compensation, willfulness, hardship to breacher, likelihood of cure.
In plain English
If a party breaks a contract in a big way, the other side can stop their part and sue for full damages. If the breach is small, the contract still stands, but the other side can claim damages for the minor issue.
Worked example
The buyer orders 100 chairs, but the seller delivers 90. This is a minor breach, so the buyer must pay for the 90 chairs but can claim damages for the missing 10. If the seller delivered 50 broken chairs, it's a material breach, and the buyer can cancel the contract and sue for full damages.
Memory hook
Material = Major Mess, Minor = Manageable. Major breach halts the contract; minor breach just tweaks damages.
The trap
Students think: any breach lets you walk away. Wrong, because only material breaches do. The actual test is based on benefit, willfulness, and cure likelihood.
How examiners test it
Scenario: partial performance with a defect. Trap: assuming performance halts. Minor breaches don't stop the contract; look for factors indicating materiality.
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