Certified Contract Management Associate 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

How is "breach of contract" defined?

A failure to negotiate terms effectively

An agreement that is not documented

A failure to perform any term without legal justification

A breach of contract is defined as a failure to perform any term without legal justification. This definition encompasses situations where one party does not fulfill their obligations as outlined in the contract, whether due to non-performance, incomplete performance, or even performing in a manner that does not meet the agreed-upon standards or specifications.

Understanding this concept is critical, as it denotes a violation of the contractual agreement, which can lead to legal consequences such as lawsuits or claims for damages. The failure to adhere to any of the stipulated terms signifies that the responsibilities laid out by the contract have not been met, thereby justifying the classification as a breach.

The other options present scenarios that do not directly constitute a breach of contract. Ineffective negotiation does not pertain to the execution of the contract itself, nor does an undocumented agreement equate to a breach since it lacks enforceability. Lastly, a delay in signing a contract may indicate a potential issue but does not represent a failure to perform the obligations set forth in an already agreed-upon contract. Thus, the delineation of breach focuses specifically on the lack of performance without legal justification.

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A delay in contract signing

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