Legally, one party's failure to fulfill any of its contractual obligations is known as a "breach" of the contract. Depending on the specifics, a breach can occur when a party fails to perform on time, does not perform in accordance with the terms of the agreement, or does not perform at all.

What happens if a contract is breached?

Under the law, once a contract is breached, the guilty party must remedy the breach. The primary solutions are damages, specific performance, or contract cancellation and restitution. Compensatory damages: The goal with compensatory damages is to make the non-breaching party whole as if the breach never happened.

Can you go to jail for breaking a contract?

Can you go to jail for breach of contract? Not likely. ... Legally speaking, breach of contract is not seen as a crime or even a tort. Additionally, punitive damages are not allowed by most states in contract law when a breach of contract occurs.