A violation of an essential agreement in a contract is known as what?

A violation of an essential agreement in a contract is referred to as a material breach. This type of breach occurs when one party fails to fulfill their contractual obligations in a significant way, resulting in an unfavorable impact on the other party. A material breach typically undermines the essence of the contract, meaning that the non-breaching party is deprived of the primary benefit they expected from the agreement.

In contrast, other types of breaches, such as minor or non-material breaches, involve less significant failures that do not fundamentally impact the contract's overall purpose or the benefits expected by the non-breaching party. A technical breach is also not as severe as a material breach; it involves a failure to adhere to specific contractual terms but does not typically affect the contract's main objectives. Therefore, identifying a breach as "material" indicates its serious nature and the potential for considerable remedies or damages to be sought by the aggrieved party.