A substantial breach of contract that affects contractual obligations can also be referred to as?

A substantial breach of contract that affects contractual obligations is referred to as a material breach. This type of breach signifies that the failure to uphold a significant aspect of the contract undermines the fundamental purpose of the agreement, allowing the non-breaching party to seek legal remedies or terminate the contract. A material breach typically involves a failure that is not minor or negligible; rather, it is serious enough to impact the entire contract's structure and execution.

Understanding material breaches is essential in supplier relationships, as they can drastically affect contractual performance and outcomes. Identifying a breach as material can lead to a reevaluation of the relationship between the parties involved and trigger specific rights or recourses, such as claims for damages or termination of the contract.

The other options represent different types of breaches. Minor breaches are less significant and often do not provide grounds for termination but may result in some compensation. Negligent breaches imply a failure due to lack of care rather than a substantial lack of fulfilment of contractual duties. Technical breaches can occur without any actual impact on performance but might still involve strict adherence to contract terms. Understanding these distinctions is crucial for contract management and supplier relationships.