What is a breach of contract?

A breach of contract occurs when one party fails to fulfill their obligations as outlined in the contract terms. This can involve not performing promised actions, missing deadlines, or providing inadequate performance. Breaches can be either material, meaning it significantly undermines the contract, or minor, which may not affect the overall obligations.

The essence of a breach lies in the failure to meet the agreed-upon terms, which can lead to legal consequences or the requirement for remedies. Understanding this definition is crucial for anyone involved in contracts, as it determines the rights and responsibilities of the parties involved and the potential for legal recourse in case of a breach.