What constitutes a breach of contract?

A breach of contract occurs when one party fails to fulfill their obligations as outlined in the agreement, without a lawful or legitimate reason for this failure. This definition encompasses various forms of non-compliance with the contract terms, making it a pivotal concept in contract law.

Option B is correct as it directly addresses the essence of a breach: the failure to perform any term of the contract. It highlights that this failure does not require a justification to be considered a breach. Understanding this concept is crucial because breaches can lead to legal repercussions, including damages or specific performance orders.

The other options do not align with this legal definition. Negotiating a better deal typically does not imply any breach, as it involves discussions that do not affect the original agreement before it is modified. The inability to meet sales targets is more related to performance metrics rather than a direct failure to uphold contractual obligations unless specified in the contract itself. Finally, closing a business without notifying stakeholders speaks to operational practices rather than the specific terms of a contract, which means it doesn’t inherently constitute a breach without further context.