EXAMPLE:
A contract between Natick, Inc., and a recording company called for 12 separate shipments of blank CDs. The first three shipments were defective and were returned to Natick. The recording company was falling behind in its production schedule when the fourth shipment arrived and that shipment was also defective. The fourt defective shipments constitute a material breach of the contract and permit the recording company to cancel the contract and perhaps to institute a lawsuit against Natick as well.
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Source: Barron's Dictionary of Legal Terms, Steven H. Gifis, 5th Edition; ©