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A material breach is a breach of contract serious enough to destroy the value of the contract and to give a basis for a lawsuit. When there is a material breach of contract an individual can sue for compensatory damages.

The term "material breach" has also been used in diplomacy with reference to treaties. A material breach by one party to a treaty can be construed as releasing other parties from their reciprocal obligations.

 

This article is licensed under the GNU Free Documentation License. It uses material from the "Material breach".

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