Did the Breaching Party Act in Bad Faith?
If the breach of contract was willful or resulted from bad faith or unfair dealing and the case is brought to court, the court is more likely to presume a material breach of contract. For example, one court found that an executive who was insubordinate and refused to follow directions had materially breached his employment agreement. On the other hand, a breach that results from simple carelessness (“negligence”) or circumstances beyond the party’s control is less likely to be considered a material breach of contract.
