Paralegal Advanced Competency Exam (PACE) Practice Exam 2025 - Free PACE Practice Questions and Study Guide

Breach of contract is defined as a failure to adhere to the terms of a valid contract. This means that one party did not fulfill their obligations as outlined in the agreement, resulting in a violation of the established terms. This can involve not completing the work, not making payments as scheduled, or failing to deliver goods or services. The essence of a breach is that it disrupts the expectations set by the contract, and thus the injured party has the right to seek remedies, which could include damages, specific performance, or cancellation of the contract.

The other choices do not accurately represent what constitutes a breach of contract. Terminating an agreement by mutual consent is not a breach but a voluntary act by parties to end their contract. Negotiating changes to a contract does not signify a breach, nor does the acceptance of new contract terms; both actions imply that the parties are willing to alter their agreement rather than one party failing to meet their obligations.