Oregon Construction Contractors (CCB) Practice Test

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What best describes a material breach of contract?

A serious violation resulting in termination
A minor violation with no consequences
A serious violation but not leading to termination
A minor violation that is easily resolved

The correct answer is: A serious violation resulting in termination

A material breach of contract is characterized as a serious violation that fundamentally undermines the contract's purpose and intent, often leading to termination or the possibility of legal repercussions. This type of breach significantly affects the parties' ability to fulfill the contract, making it impossible for one party to achieve what was agreed upon. In contrast, the other options generally refer to breaches that do not reach that level of severity. Minor violations usually imply that the breach can be rectified without drastic consequences and does not impact the overall fulfillment of the contract. Therefore, understanding the implications of a material breach is crucial for recognizing the legal rights and obligations that follow such an event in a contractual relationship.