If a material breach occurs, what actions are available?

When a material breach of contract occurs, the non-breaching party is typically entitled to pursue multiple remedies to address the breach. The correct answer indicates that the harmed party can cancel the contract and also sue for damages. This reflects the legal principle that a material breach fundamentally undermines the contract's purpose, allowing the non-breaching party to either terminate their obligations under the contract or seek compensation for losses incurred as a result of the breach.

In essence, the option of canceling the contract derives from the fact that a material breach usually gives rise to the idea that further performance is not just affected but is essentially frustrated. Alongside this right to terminate, the aggrieved party can pursue damages to recover losses caused by the breach. This dual option is aligned with the general approach in contract law to provide a meaningful remedy for substantial violations of contractual agreements.

Other options either limit the remedies or suggest unnecessary steps, such as mediation, which does not apply to the situation where a material breach has occurred. Renegotiating the terms of the contract might be an inappropriate response given that a material breach signifies a serious issue that could render the contract unusable in its original form. Thus, the non-breaching party's available actions typically encompass termination