What occurs when one party fails to fulfill their obligations as per an agreement?

When one party fails to fulfill their obligations as per an agreement, it is classified as a breach of contract. A breach of contract occurs when one party does not perform their duties outlined in the contract, either partially or completely, or does so in a manner that is not in accordance with the terms specified. This can lead to legal consequences and may entitle the non-breaching party to seek remedies such as compensatory damages or specific performance in order to rectify the situation.

The other concepts mentioned are related to different legal and business concerns. Normal damages refer to compensation awarded to one party for the losses caused by the breach but do not encompass the action of failing to fulfill contractual obligations. Corporate governance focuses on the system of rules and practices that govern a company, ensuring accountability and fairness in its relationship with stakeholders. Insider trading involves the illegal practice of trading on the stock exchange to one's advantage through non-public information about a company. Each of these elements is distinct from the notion of a breach of contract, clarifying why the answer centers specifically on that term.