What is meant by 'breach of contract'?

A 'breach of contract' refers to a situation where one party fails to fulfill their obligations as outlined in the agreement. This can happen in several ways, such as not performing the required duties, failing to meet deadlines, or delivering substandard goods or services. The essence of a contract is that both parties are expected to adhere to the terms agreed upon; when one side does not, it can lead to legal disputes and potential remedies for the injured party.

This concept is fundamental in contract law because it sets the stage for how disputes are resolved and what remedies may be available, such as damages or specific performance. Understanding what constitutes a breach allows parties to navigate contract relationships more effectively and recognize their rights when an agreement is not honored.