- wrongful nonperformance of any contractual duty of immediate performance.
- failing to perform acts promised by hindering or preventing such performance or by repudiating the duty to perform.
failure of a party (not having a legal excuse) to perform in accordance with a promise made. An insurance policy consists of legally enforceable promises made by the insurance company (insurer) only. No such promises are made by the insured. This is the reason why the insurance policy is a unilateral contract.
a violation of the terms of a legal agreement; default. Breach of contract allows the nonbreaching party to rescind the contract, sue for damages, or sue for performance of the contract.
Example: Baker contracts with owner Brown to purchase a property. When the closing date arrives, Brown refuses to convey title to the property. Brown's action is not supported by any special conditions in the sales contract and therefore constitutes a breach of contract. Baker may rescind the contract and recover his deposit, may sue Brown for any expenses and damages incurred, or may sue to force Brown to sell.
