In California contract law, CACI 303 jury instructions serve as the primary legal guide for determining whether a party’s failure to perform constitutes a material breach. This distinction is critical because it defines the legal consequences for both parties involved in the dispute.

Key functions of CACI 303 include:

• Defining Materiality: The instruction guides the jury (the fact-finder) to decide if a failure was so significant that it destroyed the essential purpose of the contract. This is a fact-specific determination based on the heart of the agreement.
• Determining Legal Outcomes: Under CACI 303, if a jury finds a breach is material, the injured party is legally discharged from their own remaining obligations under the contract.
• Distinguishing Breach Types: It helps differentiate a material breach from a minor breach. In a minor breach, the materiality requirement of CACI 303 is not triggered; while the injured party can still sue for damages, they must continue to perform their own side of the bargain.
• Burden of Proof: These instructions also place a procedural requirement on the plaintiff to prove that their claim was filed within the appropriate statute of limitations.

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