What constitutes a Breach of Contract?

A breach of contract occurs when one party fails to perform their obligations as outlined in the agreement. This encompasses any failure to follow through on the terms—whether it be not providing the agreed services, delivering substandard work, or not meeting deadlines. The essence of a contract is the mutual agreement between the parties to fulfill specified tasks and responsibilities.

When one party does not adhere to these terms, it creates a situation where the other party may suffer damages or losses because they relied on the performance of the contract. Thus, identifying that breach occurs specifically when obligations under the contract are not met is vital to understanding contractual law.

While the other options might describe situations that could be connected to a breach or may lead to a breach, they do not encapsulate the broader principle of failing to perform under the specific terms agreed to in the contract, which is the foundation of defining a contractual breach.