What is described as a situation where one party fails to fulfill contractual obligations?

The situation where one party fails to fulfill contractual obligations is referred to as a breach of contract. This occurs when a party does not perform according to the terms set forth in the contract, which can involve failing to deliver goods, make payments, or adhere to agreed-upon timelines. A breach can be either material, where the essence of the contract is undermined, or minor, where the failure does not significantly impact the overall agreement. The legal implications of a breach can lead to remedies such as damages, specific performance, or contract termination. Understanding breach of contract is crucial, as it highlights the importance of fulfilling obligations and the potential consequences of failing to do so in legal and commercial contexts.