What constitutes a breach of contract?

A breach of contract occurs when one party fails to fulfill their obligations as outlined in the agreement. This could manifest in various ways, such as not delivering goods or services, missing payment deadlines, or not adhering to specific terms stipulated in the contract. The failure to meet these obligations can lead to legal consequences, including the opportunity for the other party to seek damages or enforce the contract.

The correct answer highlights this critical aspect of contract law, where compliance with the agreed terms is mandatory for both parties involved. When one party does not meet these commitments, it constitutes a breach, allowing the injured party to take appropriate action.

In contrast, meeting all contractual obligations signifies compliance and does not result in a breach. Negotiating additional terms typically occurs in good faith between parties and does not itself indicate a breach unless those terms conflict with existing obligations. Terminating a contract with notice can be a legitimate action provided it aligns with the terms of the agreement and any legal requirements, but it is not inherently a breach if done correctly. Thus, the essence of what constitutes a breach directly relates to failing to meet the contractual promises made.