When does a breach of contract occur?

A breach of contract occurs when one party fails to perform their obligations as stipulated in the contract. This fundamental principle underscores the importance of fulfilling contractual duties; when these duties are not met, the other party may suffer a loss or detriment.

For example, if a contractor agrees to build a house by a certain date and fails to do so without a valid excuse, they are in breach of contract. The aggrieved party might then have the right to seek remedies, which could include damages or specific performance, to address the failure to meet the contract terms.

Other options such as a contract being signed by just one party, terms being misunderstood, or unsuccessful negotiations do not constitute a breach of contract. A contract is only breached when there is a failure in the agreed-upon performance, rather than simply issues related to origin of consent or understanding during the contracting process.