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What is a breach of contract?
The mutual agreement to dissolve a contract
The failure of a party to perform according to the terms of the contract
The change of terms by one party
The notification of intent to cancel
The correct answer is: The failure of a party to perform according to the terms of the contract
A breach of contract refers specifically to the situation where one party fails to fulfill their obligations as outlined in the contract. This non-performance can take various forms, such as not making required payments, failing to deliver goods or services, or not adhering to the agreed-upon timeline. When a breach occurs, it can provide the non-breaching party the right to seek remedies, which may include damages or specific performance, depending on the severity of the breach and the terms of the contract. The concept of a breach is central to contract law, as it protects the expectations of the parties involved and seeks to ensure that agreements are honored. Understanding this definition is crucial for anyone in the field of real estate, as many transactions are governed by contracts that lay out specific obligations for buyers, sellers, landlords, and tenants.