How is a 'breach of contract' defined?

A breach of contract is fundamentally defined as a situation where one party fails to fulfill their contractual obligations as stipulated in the agreement. This means that when parties enter into a contract, they establish certain conditions that each must adhere to. If one party does not meet their responsibilities—whether that's failing to deliver goods or services, not making payments on time, or not following through on agreed terms—it constitutes a breach.

In legal contexts, this breach can lead to various consequences, including the non-breaching party being entitled to seek remedies such as damages, specific performance, or contract termination. The essence of the term is rooted in the idea of obligation and performance; when these are not met as agreed upon, it disrupts the legal and relational expectations that the contract established.

Other options involve scenarios that do not reflect a breach. For instance, mutual agreement to terminate a contract or modifying terms indicates that both parties are actively participating in the decision-making process regarding the contract's validity or scope, rather than one party failing to comply. Similarly, attempting to renegotiate signifies negotiation efforts rather than a failure to adhere to obligations. Therefore, the correct definition focuses specifically on the failure to meet the expected contractual terms by one party.