What occurs during a breach of contract?

A breach of contract occurs when one party fails to uphold their end of the agreement, meaning they do not fulfill the obligations outlined in the contract. This violation can take many forms, such as not delivering goods or services as promised, not making payments on time, or failing to adhere to specific terms agreed upon. When one party does not comply, it disrupts the mutual understanding and expectations that formed the basis of the contract.

The implications of such a breach can lead to various consequences, such as potential legal action from the non-breaching party, claims for damages, or renegotiation of terms. Understanding this key aspect of contractual agreements is crucial for lease agents, as it directly relates to the rights and responsibilities of all parties involved in a lease agreement.