A breach of contract occurs when one party fails to fulfill their obligations as outlined in a legally binding agreement. This can happen in various ways, such as not delivering goods on time, failing to make payments, or not providing services as promised. The affected party may seek remedies, which can include damages or specific performance to enforce the contract. There are two main types of breaches: material breach and minor breach. A material breach significantly impacts the contract's purpose, allowing the non-breaching party to terminate the agreement. A minor breach, on the other hand, does not substantially affect the contract, and the non-breaching party may still be required to fulfill their obligations while seeking compensation for the breach.