Contracts-Material Breach
In determining whether one party has failed to comply with the terms of the contract to the point in which damages should be awarded, the court will ask whether the breach of the contract is material. A material breach of contract is one that goes to the very heart of the agreement. In the house painting example, the failure to pay the one hundred dollars obviously goes to the very heart of the agreement and that failure to pay clearly would be a material breach of contract. If, on the other hand, the painter was one day late in completing the job then, typically, that one day delay would not be a material breach of contract unless the contract contained a time is of the essence clause. If such a clause was in the contract, then that means that the parties have expressly agreed that every minute counts. If the party that is required to perform does not perform on time, then that will be considered a material breach that may bar any right to payment that the parties may have.
A material breach of contract goes to the very heart of the agreement.