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Material terms often relate to payment, delivery, performance, or other obligations that formed the basis of the agreement. A material breach may also involve conduct that goes to the essence of the bargain, meaning it prevents the other party from receiving the benefit they entered into the contract to obtain. If the obligation that has not been performed goes to the heart of the agreement, the non-breaching party may have the right to terminate the contract and pursue legal remedies. Before deciding how to respond, I always encourage clients to look at the contract as a whole. In many commercial disputes, the real question is not whether a breach occurred, but whether it was significant enough to justify ending the business relationship or seeking damages. That assessment often shapes the strategy for resolving the dispute from the outset. What industries are experiencing the highest increase in contract disputes in 2026? Contract disputes arise across virtually every industry, but some sectors are facing more frequent challenges this year because of the change of pace in their day-to-day operations. Technology is one area where we are seeing more uncertainty. While businesses continue to incorporate AI into their products, services, and internal processes, many existing agreements were not drafted with these developments in mind and are not being updated or modified to reflect the changes in the industry. Questions surrounding ownership of AI-generated work, responsibility for errors, confidentiality, and intellectual property are exposing gaps in contracts that may have seemed perfectly adequate only a few years ago. The construction industry also continues to generate a significant number of contract disputes. Ongoing labour shortages, material cost inflation, and continued supply chain delays have made it more and more difficult for projects to stay on schedule and within budget. When circumstances change after a contract has been signed, disagreements often follow over responsibility for delays, additional costs, or changes in scope. Despite the differences between these industries, many contractual disputes share a common thread: Contracts that fail to address changing business conditions or clearly allocate risk are far more likely to become the subject of litigation when new and unexpected issues arise. What immediate steps should a business take if it believes a breach has occurred? The first step should always be to carefully review the contract before taking any action. Businesses should make efforts to identify the specific provision they believe has been breached and determine what obligations remain on both sides. Acting too quickly without fully understanding the agreement can potentially make the situation more complicated. It is equally important to pay close attention to any notice provisions contained in the contract. Many commercial agreements require written notice of an alleged breach within a certain