What term describes a party’s failure to fulfill their contractual obligations?

The term that describes a party’s failure to fulfill their contractual obligations is "breach of contract." This concept refers specifically to instances where one party fails to perform their duties as specified in the contract, either by not performing at all, performing incompletely, or performing in a way that does not meet the agreed-upon terms.

Understanding the implications of a breach of contract is essential in commercial law because it can lead to legal remedies, including damages or specific performance, to address the failure. In a contractual relationship, both parties have certain obligations, and a breach indicates that one party has not adhered to these obligations, which can adversely affect the other party's interests.

The other terms listed do not accurately capture the essence of failing to fulfill contractual obligations. For instance, "termination" refers to ending a contract rather than the failure to meet obligations. "Violation" is often a broader legal term and may refer to various types of breaches, not just in a contractual context. "Negligence" usually pertains to a failure to take reasonable care in fulfilling a duty, which is distinct from the specific failure to meet contractual obligations as outlined in a breach of contract scenario. Thus, "breach of contract" is the precise term that encompasses the failure to