Breach of Contract Withholding

Sometimes people wonder if they can withhold payment under a contract due to the other party’s breach of the contract. While that is possibly allowed depending on the nature of the breach, the circumstances leading up to it, and the ramifications thereof, not every breach permits such. As the Supreme Judicial Court required potential litigants earlier today in a published decision, refusal of performance (payment) by a non-breaching party will ordinarily require that the breach was “material.” To be “material”, the breach must involve an essential and inducing feature of the contract.