Breach

In one sentence

A failure to do what a contract requires, such as not paying or not delivering.

Plain English

A breach occurs when one party fails to perform their obligations under a contract without legal excuse. Breaches can be minor (paying a day late) or major (not delivering goods at all). If there is a material breach—one that goes to the heart of the deal—the other party can usually cancel the contract and sue for damages. Even minor breaches can lead to liability, though the damages may be small.

Ad slot

Example

A contractor agrees to paint a house by June 1st but does not start until June 15th. This is a breach of the contract's timeline. If the delay causes the homeowner to lose a sale, the homeowner can sue for damages.

Used in a sentence

“The seller's breach of the warranty gave the buyer the right to reject the goods and demand a refund.”

Related terms

Material Breach

A significant failure to perform a contract obligation that defeats its core purpose.

Specific Performance

A court order forcing someone to actually do what they promised in the contract.

Damages Calculation

The process of determining how much money a harmed party should receive for a breach.

Mitigation

A duty to reduce or minimize losses caused by the other party's breach.

Mutual Rescission

Both parties agreeing to cancel a contract and release each other from all obligations.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.