When an event could reasonably be expected to influence the decision of a party to enter a contract, that event may be said to be "material".

Question

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This is a commonly accepted definition of materiality in contract law. Materiality refers to information or events that are significant enough to influence a party's decision to enter into a contract. For example, if one party is aware of a pending lawsuit that could impact the subject matter of the contract, that would likely be considered a material fact that should be disclosed to the other party before the contract is signed.

When an Event Could Reasonably Be Expected to Influence the Decision