What is the result of a serious breach of contract?

A serious breach of contract, often referred to as a "material breach," results in the non-breaching party having the right to seek damages or discharge from the contract. This means that the party that did not breach the agreement may pursue compensation for any losses suffered due to the breach or choose to terminate the contract altogether, relieving themselves from any further obligations under it.

In the context of contract law, the consequences of a serious breach are significant because it undermines the foundational purpose of the contract, which is to ensure that both parties fulfill their agreed-upon responsibilities. When a breach is serious enough to affect the overall contract's value or purpose, the non-breaching party can claim that they are owed significant remedies, which can include monetary damages for losses incurred.

While other responses may address aspects of contract breaches, they do not capture the primary legal recourse available to the non-breaching party in a serious breach situation. Mandatory arbitration may be a method of dispute resolution outlined in the contract, but it does not automatically occur due to a serious breach. Termination of the business relationship may happen as a result, but it is only a part of the broader consequences of seeking damages or discharge. Legal penalties might be relevant in disputes involving statutory