In case of material breach, which of the following statements is NOT true?

1.Material breach of a contract occurs when a party renders inferior performance of his or her contractual obligations that impairs or destroys the essence of the contract.2.There is no clear line between substantial performance and material breach and the court must make a decision on a case by case basis.3.The non-breaching party must still perform completely or he will have breached the contract4.The non-breaching party may rescind the contract and seek restitution of any compensation paid under the contract to the breaching party.