Bankruptcy Section
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What is a “material breach”?
A material breach of a contract occurs when a party’s actions “deprived [the other party] of the benefit that could have been reasonably anticipated from full performance” of the contract. In this instance, the aggrieved party can suspend performance of its obligations under the contract. However, if the non-performance of a party is caused by the other party, the non-performing party is excused from non-performance.
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