What term describes the situation when a contractor fails to meet a contractual obligation?

The term that describes the situation when a contractor fails to meet a contractual obligation is "Breach of contract." This occurs when one party does not fulfill their duties as outlined in a contract, which can include not delivering services, failing to pay, or not completing work on time. A breach can be both material, where the failure significantly undermines the contract's purpose, or minor, where the breach does not critically impair the contract's overall value.

Understanding breaches of contract is crucial for contractors as it can lead to legal disputes, financial penalties, and damage to relationships with clients or subcontractors. Knowing how to identify a breach and the potential consequences can help contractors avoid such situations or manage them effectively should they occur.

The other terms refer to different legal concepts. A waiver involves relinquishing a right or claim, an amendment refers to a formal change to the terms of a contract, and indemnification relates to securing against damage or loss, typically involving compensation after an injury or loss has occurred.