What may happen if a contract is breached?

If a contract is breached, the injured party has legal recourse that typically includes seeking damages or specific performance through the court system. Damages are monetary compensation intended to restore the injured party to the position they would have been in had the contract been fulfilled. Specific performance, on the other hand, is a legal order requiring the breaching party to fulfill their obligations under the contract, rather than simply paying damages. This option recognizes the legal framework that exists to remedy breaches in contractual agreements, ensuring that one party does not unfairly benefit from another's reliance on the contract.

The other options do not accurately reflect the legal outcomes of a breach of contract. The idea that the breaching party is automatically forgiven misrepresents the consequences of failing to uphold one’s contractual duties. Similarly, suggesting that both parties must renegotiate the terms of the contract ignores the fact that a breach can occur regardless of any desire to renegotiate. Finally, the notion that the contract becomes null and void without consequences overlooks the legal responsibility and potential liabilities that arise from a breach. Thus, the correct option effectively encapsulates the remedies available to the injured party in the event of a contract breach.