What Is a Breach of the Contract?

A breach of contract happens when one party fails to fulfill their obligations as outlined in a legally binding agreement without a valid legal excuse. This can involve not delivering goods or services on time, providing substandard work, or not paying as agreed. For a breach to occur, there must first be a valid contract, meaning both parties agree to clear terms that create enforceable obligations.

Breaches can vary in severity. A minor breach might involve small details not being met, while a material breach occurs when a critical part of the agreement is broken. In some cases, one party may signal ahead of time that they won’t be able to fulfill their obligations, which is called an anticipatory breach. Courts evaluating a breach will consider whether a valid contract existed, whether the breach caused harm, and what remedies are appropriate.