What constitutes a breach of contract?

A breach of contract occurs when one party fails to meet their contractual obligations as outlined in the agreement. This is significant because a contract is a legally binding agreement, and when one party does not uphold their end of the deal, it undermines the trust and expectations that led to the formation of the contract.

In this context, if one party does not perform as specified—whether by not completing their tasks, failing to deliver goods, or not making a payment—this reflects a breach. Legal remedies may then be pursued by the aggrieved party, such as seeking damages or specific performance, depending on the situation.

The other options describe scenarios that do not indicate a breach. For instance, when both parties agree to change terms, this reflects mutual consent and a modification of the contract, not a failure to perform. Similarly, when one party fulfills their obligations or when a contract is fully executed means that all parties have met their responsibilities and the contract has been completed, which does not involve any breach.