What constitutes a breach of contract?

A breach of contract occurs when one party fails to fulfill their obligations as stipulated in the terms of the agreement. This includes any instance where the agreed-upon performance is not delivered, whether it be a failure to perform tasks, provide goods, or make payments as outlined in the contract.

In this context, the action of not fulfilling the terms agreed upon in a contract is a clear violation of the contractual obligations that the parties have accepted. Contracts are legally binding, and when one party does not adhere to their commitments, it constitutes a breach, thereby giving the other party the right to seek remedies, which could include damages or specific performance.

The other options do not accurately represent what constitutes a breach of contract; for example, failing to pay interest on a loan might be part of a breach but does not encompass the broader definition of failing to fulfill agreed-upon terms. Similarly, declining to negotiate terms or simply disagreeing with contract terms does not amount to a breach, as these actions do not involve the failure to perform or fulfill specific obligations already established in a binding agreement.