Ontario Mortgage Agent Practice Exam

A breach of contract occurs when one party fails to fulfill their obligations under a contract's terms, which can include failing to perform on time, providing inadequate performance, or not performing at all. This violation can lead to legal consequences and remedies, including compensation for damages suffered by the other party due to the breach.

Understanding this concept is fundamental in any contractual agreement, as it emphasizes the importance of adhering to the terms outlined in the contract. It also underlines the possible repercussions that could arise from a failure to comply with those terms, such as the need for remediation or restitution for the non-breaching party.

In contrast, the other terms listed refer to different legal concepts related to contracts. For example, assignment deals with transferring rights or obligations from one party to another, while a condition precedent is a specific condition that must be met for a contract to be enforceable. Consideration refers to the value exchanged between parties in a contract. Each of these elements is important in understanding contracts, but they do not define a breach.