is a legal
term which can have different meanings, depending on context. When speaking of facts, the term generally means a fact which is "significant to the issue or matter at hand".
In the law of evidence
An item of evidence
is said to be material if it has some logical connection to a fact of consequence to the outcome of a case
. Materiality, along with probative
value, is one of the two characteristics which makes a given item of evidence relevant
. This is largely dependent upon the elements of the cause of action
seeks to prove, or that the prosecutor
must prove in a criminal case
in order to secure a conviction. Which issues must be factually proven are therefore a product of the underlying substantive law
In corporate and securities law
Within the context of corporate
and securities law
in the United States
, a fact is defined as material if there is a substantial likelihood that a reasonable shareholder
would consider it important in deciding how to vote. In this regard, it is similar to the accounting term of the same name
Materiality is particularly important in the context of securities law, because under the Securities Exchange Act of 1934, a company can be held civilly or criminally liable for false, misleading, or omitted statements of fact in proxy statements and other documents, if the fact in question is found by the court to have been material.
In contract law
In the law of contracts
, a material term
in a contract is a term or provision of a contract which concerns significant issues, such as the subject matter, price, quantity, the type of work to be done, and terms of payment or performance.