What Is a Breach of Contract?

Failure to perform an obligation required under a contract, subject to the terms of the agreement and applicable law.

What Does Breach of Contract Mean?

A breach occurs when a party does not perform what the contract required, such as failing to pay, deliver, perform or observe a term. Whether a breach exists depends on the contract and the applicable law.

Why It Matters

Breach is the starting point for most contract disputes. Reviewing the contract, the correspondence and the supporting documents clarifies what happened and what options may be available.

Related Information

Related legal terms: Contract, Termination Clause, Liquidated Damages

Related practice area: Corporate & Commercial Law →

Dealing With a Related Matter?

This explanation is a general starting point. If the term matters in a specific situation you are facing, a conversation about your facts can help you decide the right next step.

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This definition provides general information and does not constitute legal advice. Laws change, and their application depends on the facts of a matter. For advice on your specific situation, consult a qualified lawyer.