material

Material refers to information that is significant enough to determine an issue. It can be used in the following contexts:

In the context of civil procedure, a genuine issue of material fact refers to an actual, plausible issue of fact that must be decided by a jury or judge. An issue of material fact precludes summary judgment because the issue is relevant and consequential.

In the context of evidence law, relevant evidence must be material: influencing the determination of the action, and probative. For example, issues affecting a witness’s credibility are relevant, and they are material because if their testimony cannot be believed then the development of facts will be obscured.

In the context of contract law, material refers to an event or term that significantly impacts a party’s expectations under the contract. For example, the term “material adverse effect” describes events that alter the parties’ expectations so significantly that the event extinguishes the parties’ obligations under the contract. For another example, a material breach of contract refers to a court finding that a party failed to satisfy their obligations enough to where the aggrieved party may be entitled to a remedy.

In the context of securities fraud, misrepresentation must be material to give rise to liability. In Basic v. Levinson, 485 U.S. 224 (1988), the U.S. Supreme Court stated that the test for whether a company’s decision not to disclose an event is material is a balance of the probability that the event would have occurred and the magnitude of the event.

[Last reviewed in August of 2026 by the Wex Definitions Team]

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