What does it mean when a contract is considered "breached"?

A contract is considered "breached" when one party fails to meet the terms of the contract. This failure can manifest in various ways, such as not delivering goods or services as promised, not making payments on time, or not adhering to specified conditions outlined within the contract. A breach can be either a partial breach, where some but not all obligations are unmet, or a material breach, where the failure is significant enough to undermine the contract’s purpose, potentially allowing the non-breaching party to seek remedies such as damages or termination of the contract.

Understanding this concept is crucial because breaches fundamentally disrupt the expectations established by the agreement, leading to potential legal consequences and the need for resolution processes. The other options do not accurately describe what a breach entails: fulfilling obligations indicates compliance, mutual consent to void a contract suggests parties agree to terminate, and renegotiation implies adjustments to the terms rather than a failure to meet them.