What is meant by breach of contract?

Breach of contract refers to the failure to comply with one or more terms outlined in the contract. This can occur in various ways, such as not fulfilling obligations, failing to perform duties as specified, or not adhering to deadlines. In real estate transactions, for instance, a breach could happen if a seller fails to disclose necessary information or if a buyer does not complete the purchase by the agreed date.

Understanding breach of contract is fundamental in real estate practice, as it impacts the rights and remedies available to the injured party. Remedies might include financial compensation, specific performance, or termination of the agreement, depending on the nature of the breach and the specific terms of the contract.

Other options describe different legal scenarios; declaring a contract void by law pertains to contracts that are inherently unenforceable. A contract that was never entered into signifies that no agreement was established from the outset. Lastly, the situation where all parties agree to terminate the contract is known as mutual rescission, which is not a breach but rather an agreement to end the relationship established by the contract.