A material breach occurs when a contractor fails to perform a significant part of the contract. It is not just any minor hiccup or delay – it’s a substantial failure that goes to the heart of what your contractor promised in writing.
This is different from a minor breach. A minor breach lets you seek damages for any losses incurred. However, a material breach may allow you to terminate the contract and potentially seek full compensation.
What factors determine whether a breach is material?
Florida courts typically consider:
- The extent of the damage: How much has the breach hurt the property owner? Did it significantly affect the project’s value or timeline?
- The possibility of compensation: Can the contractor adequately compensate the property owner for the breach, or is the damage too severe?
- The likelihood of correction: Is there a reasonable chance that the breaching party can fix the problem?
- The breaching party’s behavior: Did they act in good faith, or was there evidence of intentional wrongdoing?
If a contractor is a week late in completing due to unexpected rain, it usually does not impact the overall project or alter the agreement’s nature, making it a minor breach. However, if they use low-quality concrete that doesn’t meet building code requirements, it may go against the core of the contract – providing a safe, code-compliant building.
What does this mean for you?
It’s important to act promptly if you suspect a material breach since Florida law generally limits the time to file a lawsuit to four years for construction-related disputes. However, this can vary depending on the specific circumstances. An attorney can help you assess the situation and guide you through the appropriate legal steps.
It’s equally vital to maintain open communication with your contractor. Both parties may be able to resolve issues through clear, professional dialogue before they escalate. However, document any issues thoroughly as they arise. This can be crucial if legal action becomes necessary.
Protect your investment
While this information provides a general overview, each construction project and contract is unique. If you suspect a material breach in your project, consult with an attorney to ensure that you fully understand your rights and options under your specific contract and applicable laws.
