But only in cases of material breach can the non-breaching party cancel the deal entirely. In all cases of breach of contract – material or not – the non-breaching party can sue the breaching party for damages. 2004), the Texas Supreme Court concluded that a contractor’s material breach excuses the non-breaching party from making further payments but a non-material breach only gives the non-breaching party a claim for damages.
Why is it important to know if a breach of contract is material or non-material? In Mustang Pipeline Co. A material breach of contract (sometimes called a “total breach”) is a failure to perform obligations under a contract in so fundamental a way that the law considers the agreement to be “irreparably broken” and the purpose of the contract is thereby defeated.