Which of the following best describes a breach of contract?
A) a situation in which one or both parties to a contract do not perform their duties
B) a situation in which both the parties agree to substitute the existing contract
C) a situation in which an intended beneficiary holds a party liable for not performing to his satisfaction
D) a situation in which one or both parties intend to assign the benefits to a third party

Question

Quizplus · Accepted Answer

A breach of contract occurs when one or both parties to a contract fail to fulfill their obligations under the agreement. It can involve failing to deliver goods, services, or payment as promised or violating other terms of the contract.

Option B describes the process of modifying or altering the terms of an existing contract with the agreement of both parties, which is not a breach of contract.

Option C describes a situation where an intended beneficiary, who is not a party to the contract, holds a party liable for failing to perform their obligations. This scenario is not a breach of contract as the beneficiary has no legal standing to enforce the terms of the agreement.

Option D describes the process of assigning the benefits of a contract to a third party, which is not a breach of contract as long as the original parties continue to fulfill their obligations.

Which of the Following Best Describes a Breach of Contract