A "material breach" occurs when one party fails to fulfill a significant part of a contract, undermining its overall purpose. This type of breach is serious enough that it allows the other party to terminate the contract and seek damages. For example, if a contractor does not complete a major part of a construction project, it can be considered a material breach. In legal terms, a material breach is different from a minor breach, which may not significantly impact the contract's value. Courts often evaluate factors like the extent of the breach and its consequences when determining if a breach is material. Understanding this concept is crucial for parties involved in any contractual agreement, such as businesses or individuals.