What does a material breach commonly lead to?

A material breach commonly leads to litigation because it signifies a significant violation of contract terms that fundamentally undermines the agreement's purpose. When one party fails to meet their critical obligations under the contract, the non-breaching party is often left with insufficient recourse and may seek damages or specific performance through legal channels. This action arises because the breach affects the essential aspects of the contract, thereby creating grounds for legal action.

In the context of other potential outcomes, such as mutual agreement on terms or voluntary withdrawal from the contract, these scenarios typically imply cooperation or consent between the parties, which is unlikely when a material breach occurs. The option of the successful completion of the project would also be an unlikely outcome if the breach is significant enough to disrupt the contract’s intent and execution. Thus, litigation emerges as the most appropriate response to a material breach due to the legal ramifications it entails.