What is considered a breach of contract?

A breach of contract is defined as the failure of one party to perform their obligations as set forth in the agreement. This fundamental principle underscores the importance of adhering to the terms of a contract, which is a legally binding document outlining the responsibilities of each party involved. When one party does not meet their contractual duties—whether by not completing a task, failing to deliver goods, or not making payments as scheduled—it constitutes a breach.

In this context, the other options do not align with the established definition of a breach. For instance, when both parties agree to alter the original contract terms, it reflects mutual consent and negotiation rather than a failure to comply with the original agreement. Termination of a contract by mutual consent is also a cooperative action that does not imply a breach; instead, it signifies that both parties have come to an agreement to end their obligations. Lastly, disagreements over the interpretation of contract terms may lead to disputes but do not constitute a breach unless one party ultimately fails to comply with an interpretation that is upheld in legal or contractual terms. Therefore, the definition of a breach focuses specifically on the failure to carry out the agreed-upon obligations.