Which of the following best describes 'material breach'?

The correct choice accurately captures the essence of a 'material breach' in contract law. A material breach occurs when one party fails to perform a significant part of the contract, which undermines the contract's value or purpose. This type of breach go beyond minor issues and indicates that the obligations have not been fulfilled to a degree that affects the agreement's fundamental intent.

In this context, performing below what is expected can lead to liability for damages, meaning the non-breaching party may seek remedies for any losses incurred as a direct result of this failure. A material breach typically allows the aggrieved party to either terminate the contract or seek compensation for damages incurred.

Other choices do not align closely with the legal definition of a material breach. Minor issues or fulfilling the contract with slight shortcomings do not rise to the level of a material breach, nor does ignoring the contract entirely equate to a breach that would carry consequences without legal repercussions. Thus, the first choice best describes a material breach's impact on contractual obligations and legal rights.