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Let’s say your supplier misses a delivery date or a contractor finishes a job but skips a few agreed-upon details. Is that enough to cancel the contract—or is it just a minor hiccup? In business, contracts are essential, but not every misstep amounts to a full-blown breach.
If you’re dealing with a contract dispute in North Carolina, the difference between a material breach and a minor breach impacts the available remedies.
What Is a Material Breach?
A material breach occurs when one party fails to perform a duty that is central to the contract—so central, in fact, that the agreement can’t go forward as intended. It’s a serious violation that often justifies terminating the contract and may allow the non-breaching party to sue for damages.
Examples of material breaches include:
- A vendor failing to deliver products
- A builder using substandard materials that compromise the safety of a structure
A business partner refusing to pay as agreed
Let’s say you hire a company to design and launch your website by a set deadline, but they fail to deliver any functioning site at all. That’s likely a material breach. It defeats the purpose of the contract and causes actual harm to your business.
In North Carolina, courts look at whether the breach “goes to the heart of the contract.” If it undermines the whole reason the agreement was made, it’s probably material.
What Is a Minor Breach?
A minor breach, also called a partial or nonmaterial breach, happens when one party fails to fulfill a small part of the contract, but the overall purpose of the agreement is still met.
This type of breach doesn’t typically allow the other party to cancel the contract—but it may still warrant compensation for any inconvenience or financial impact.
Examples of minor breaches include:
- Delivering goods one day late with no loss to the buyer
- Slight deviations from contract specifications that don’t affect the outcome
- Minor errors in paperwork or communication
For instance, if that same web developer finishes the site on time but forgets to include one agreed-upon feature—which they can quickly add—that’s a minor breach. You’re still getting the overall benefit of the bargain.
Why the Difference Matters
The classification of a breach—material or minor—affects your rights. If it’s material, you may have grounds to:
- Cancel the contract
- Withhold your performance (e.g., stop payment)
- Seek full damages in court
If it’s minor, you typically must continue fulfilling your obligations under the contract and may only recover limited damages for the specific shortfall.
In other words, how a breach is defined can shape the entire outcome of a dispute. That’s why it’s essential to evaluate the situation carefully before reacting.
How North Carolina Courts Decide
In North Carolina, courts consider several factors when deciding whether a breach is material including, but not limited to:
- The extent of the failure: How much of the contract was affected?
- The impact on the non-breaching party: Did the breach make it hard or impossible to get the expected benefit?
- Whether the breach was intentional or accidental
- If the problem can be fixed easily and quickly
- The terms of the contract and whether the breach involves interrelated, reciprocal, and/or contingent provisions
Each case is different, and small facts can make a big difference. A judge may also look at the parties’ conduct before and after the breach and whether either side tried to resolve the issue in good faith.
What to Do If a Breach Happens
If you think the other party has breached a contract—whether in a big way or a small one—don’t rush to conclusions. Here are a few smart steps to take:
- Review the contract to understand your rights and obligations.
- Document the issue—including emails, invoices, timelines, and any losses.
- Avoid retaliating or withholding performance unless you’ve consulted with an attorney.
At Patrick, Harper & Dixon, we help North Carolina businesses and individuals assess breach claims, enforce agreements, and resolve disputes. Whether the breach is material or minor, we work to protect your business interests and find a practical path forward.
Facing a Breach of Contract?
A breach of contract doesn’t always mean the end of a deal—but it could. Knowing the difference between a material and minor breach can help you respond appropriately and protect your rights.
If you’re unsure how a breach might affect your business, reach out. Our attorneys are here to help you review your options and take the next step with clarity and confidence. Contact our Hickory, NC office today.
