Question

24. A “material breach” of a contract:

Select one:

a. Occurs when the non-defaulting party does not get all or substantially all the benefit he bargained for.

b. Is an unjustified failure by a party to perform his principal obligations as promised in a contract.

c. All of the above.

d. Occurs when the breach significantly impairs one party’s rights under the contract.

Answer 1

Correct Answer:

Option(d) that it occurs when the breach significantly impairs one party’s rights under the contract.It is also known as ' Total breach contract' where the Contract is full completely ended and so it creates more damage than non material contract.

Incorrect answers:

Option(a) that it occurs when the non-defaulting party does not get all or substantially all the benefit he bargained for is incorrect answer because this is not material contract and it will not make more damage than material contract.

Option(b) that is an unjustified failure by a party to perform his principal obligations as promised in a contract is incorrect answer because it will not make more damage than material contract.

So correct answer is option(d)