A material breach of contract occurs when a party does what?

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Study for the NCEES FE Ethics Exam. Refresh your knowledge with multiple-choice questions designed to enhance comprehension and analysis. Prepare effectively for your engineering career!

A material breach of contract occurs when a party fails to meet essential obligations, impairing the contract's essence. This definition captures the core of what constitutes a material breach: it directly affects the agreement's fundamental purpose and deprives the other party of what they were supposed to receive under the contract.

In essence, a material breach goes beyond minor infractions or delays; it signifies a significant failure that undermines the contract's framework. This might include not delivering the agreed-upon services or products, which critically impacts the contractual relationship and justifies the aggrieved party in seeking remedies or even terminating the contract.

The other options highlight issues that could arise in a contract but do not necessarily constitute a material breach on their own. For instance, delays in project completion might be serious but can sometimes be excused or resolved without fundamentally altering the contractual obligations. Lacking sufficient resources could indicate potential issues but doesn't automatically mean that the contract's essence has been compromised. Implementing changes without agreement may breach the terms of the contract but might not reach the level of a material breach if it does not significantly affect the other party’s expectations or rights.

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