What occurs when one or both parties fail to meet all terms of the contract?

When one or both parties fail to meet all terms of the contract, this situation is accurately described as "partial performance." This concept refers to instances where a party has fulfilled some, but not all, obligations outlined in the agreement. Partial performance can occur for various reasons, including unforeseen circumstances or the decision of one party to fulfill only certain aspects of the contract.

In legal contexts, partial performance can affect how disputes are resolved, potentially allowing for partial remedies or adjustments to obligations if the party that has performed can demonstrate that they completed significant portions of the contract. It reflects the idea that while the contract as a whole may not have been fully executed, there has been some action taken that fulfills part of the agreement.

"Impossibility of performance" refers to situations where it genuinely becomes impossible to fulfill the contract due to external factors. "Performance of a contract" generally indicates that all terms have been met completely. "Specific performance" is a legal remedy that compels a party to perform their contractual obligations as originally agreed, often used when damages are not sufficient to resolve the issue. Understanding these distinctions is crucial for navigating contract law effectively.