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Which type of breach may lead to litigation due to its seriousness?

  1. Immaterial breach

  2. Partial breach

  3. Material breach

  4. Technical breach

The correct answer is: Material breach

A material breach is significant because it fundamentally undermines the contract's purpose, hindering the ability of the aggrieved party to receive the benefits they were promised. This type of breach typically involves a failure to fulfill essential obligations or deliverables outlined in the contract. Given its seriousness, a material breach opens the door for the injured party to pursue litigation in an effort to seek damages or enforce the terms of the agreement. The impact of a material breach is substantial because it may cause significant financial or operational harm, making resolution outside of court less likely. Courts are often called upon to provide remedies for such breaches, which can include monetary damages, specific performance, or other forms of equitable relief. In contrast, other types of breaches, such as immaterial, partial, or technical breaches, generally do not warrant the same level of legal action because they do not significantly impair the contract's overall effectiveness.