What constitutes a breach of contract?

A breach of contract occurs when one party fails to fulfill their obligations as outlined in a legally binding agreement. This means that if a party does not perform what they agreed to do under the terms of the contract, it constitutes a breach. For example, if a supplier agrees to deliver goods by a specific date and fails to do so, that is a clear breach of contract, as they did not perform their contractual obligation.

The other options presented relate to different aspects of the contract formation and negotiation process. For instance, failure to negotiate terms may indicate that parties did not successfully reach an agreement, but it does not pertain to a breach; rather, it suggests that a contract may not have been formed at all. Similarly, failing to document an agreement may indicate a lack of written evidence of terms, which affects enforceability but does not reflect a breach once a contract is in place. Lastly, failure to reach mutual consent refers to the absence of agreement from parties, which is a necessary precursor to any contract; again, this does not signify a breach once an agreement exists. Thus, the core element defining a breach is the failure to perform obligations as stipulated in the contract.