What term describes the failure of either party to comply with the terms of a contract?

The term that describes the failure of either party to comply with the terms of a contract is "breach." This occurs when one party does not fulfill its contractual obligations, which can include not performing according to the agreed terms, failing to meet deadlines, or not delivering promised goods or services. A breach can be either material, which significantly harms the contract's purpose, or minor, which may not have a significant impact but still constitutes a failure to comply.

In the context of contracts, understanding what constitutes a breach is crucial because it opens the door for the non-breaching party to seek remedies, which may include damages or specific performance. Recognizing the legal implications of a breach is essential for both parties to avoid disputes and ensure smooth contractual relations.

While termination refers to the ending of a contract, suspension involves pausing contractual obligations, and modification entails altering the terms of the contract, none of these terms capture the specific act of failing to adhere to the agreed-upon conditions as clearly as "breach" does.