A contract breach in which a party fails to perform a promise that goes to the essence of the contract is called?

• A. Material breach
• B. Minor breach
• C. Anticipatory breach
• D. Performance breach

Answer: (A)

When a promise central to the agreement isn’t performed, it goes to the heart of the contract. This is a material breach: it defeats the main purpose of the bargain, so the non-breaching party can suspend performance, terminate the contract, and sue for damages because the value of the deal has been substantially undermined. By contrast, a minor breach involves only a small deviation that doesn’t destroy the contract’s overall purpose, so termination isn’t typically allowed—the harmed party can claim damages but still must perform or accept the remaining terms. Anticipatory breach is a different scenario where a party signals ahead of time that they won’t perform, giving the other side the option to treat it as a breach now. The term “performance breach” isn’t a standard category and doesn’t specify the seriousness of the failure. So the breach that goes to the essence of the contract is best described as a material breach.