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breach of contract

Breach of contract is the material failure to fulfill one's contractual obligations.

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breach of contract

Breach of contract is the material failure to fulfill one's contractual obligations.

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Insurance policies typically do not cover liabilities arising out of a breach of contract because it is viewed as a business risk within the control of the insured. In some cases, most notably construction defect claims, this has led to extensive litigation over what constitutes a breach of contract versus ordinary negligence.