A breach of contract is a failure by one party to meet an obligation it agreed to. In a property transaction, it might be a buyer failing to pay on time or a seller failing to deliver the property as agreed, and it can trigger remedies set out in the contract or by law.
Where you’ll see it
You’ll see breach arise where a party misses a deadline, fails to complete, or does not deliver what was promised. The sale agreement usually sets out the consequences — such as forfeiting or refunding a deposit, or claiming compensation.
Why it matters
The consequences of breach are often where the real money is. A well-drafted contract makes clear what counts as a breach and what each side can do about it, which is why understanding these terms before signing matters as much as the price.
What it is not
A breach is not the same as failing a condition precedent, which may simply release a party. It is a failure to perform an obligation that has taken effect, and it generally entitles the other side to a remedy.
Example
A buyer fails to pay the balance by the agreed date without a valid reason; under the contract this is a breach, and the seller may be entitled to retain the deposit per the agreed terms.
Connected documents and parties
Sale agreement, notices, evidence; buyer, seller, courts if escalated.
Going deeper: related reading: deposit forfeiture.
Related Terms
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