Which of the following is an example of a violation of contract terms?

Study for the 75 Hour Broker Pre Licensing Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Making a late payment is indeed an example of a violation of contract terms. Contracts typically outline specific obligations and timelines that both parties must adhere to. When a payment is not made by the deadline specified in the contract, this constitutes a breach of that contractual obligation because it disrupts the agreed-upon terms between parties. Contracts are legally binding agreements, and failing to comply with aspects such as payment schedules can lead to consequences, which may include penalties, interest, or even legal action for breach of contract.

In contrast, fulfilling all payment obligations signifies compliance with the contract, and negotiating new terms reflects an attempt to modify the agreement rather than violating it. Requesting a contract renewal demonstrates an interest in continuing the agreement under potentially new conditions and does not in itself violate the terms. Only the action of making a late payment directly disrupts the execution of the contract as originally stipulated.

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