![]() Such a total breakdown of the material provisions of a contract may be referred to as a “fundamental” or “repudiatory” breach. ![]() For example, if the contractor in the above example had used thin plastic not intended for the rigors of maintaining a pond, which could not be expected to last as long as the pond liner, the homeowner might recover the actual cost to correct the material breach, which would include removing the pond and replacing the liner.Ī material breach of contract may relieve the aggrieved party of his own obligations under the contract, and give him the right to sue for damages. Material Breach of Contractįailure of one party to perform his obligations under the contract in such a way that the value of the contract is destroyed, exposes that party to liability for breach of contract damages. In this case, because the color of the liner has no affect on functionality, and the price was basically the same, the difference in value, or “actual damages,” is zero. The homeowner could ask that the contractor be ordered to refund the difference in price between the requested black liner and the installed blue liner. The contractor may have breached the precise terms of the contract, but the homeowner cannot ask that the contractor be ordered to take out the pond and start over with the black liner. ![]() The contractor instead installs a blue liner of the same design and thickness, which is totally hidden from view. A homeowner hires a contractor to put a pond in his backyard, showing the contractor the black liner her would like installed under the sand.
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