What is a breach of contract?

A breach of contract occurs when one party fails to fulfill their obligations as outlined in the contract without a legitimate legal excuse. This means that for a breach to be identified, there must be a clear failure to perform specific terms set forth in the agreement.

In this context, the definition captures the essence of the contractual relationship, where each party has certain responsibilities. If one party does not meet these responsibilities, it can disrupt the expectations and agreements formed between both parties. The legal framework provides recourse for the injured party, which could involve seeking damages or enforcing the contract.

Understanding this definition is crucial in real estate transactions, as contracts govern various agreements, such as purchase sale agreements, leasing, and contingencies. Awareness of what constitutes a breach allows parties to navigate their rights and obligations effectively in any real estate dealings.