What describes a breach of contract?

A breach of contract is accurately described as the failure to honor a binding agreement. This occurs when one party does not meet the obligations set forth in the contract, whether it's failing to deliver goods, not making payments, or not fulfilling specific duties outlined in the agreement. When a breach happens, it can lead to legal consequences, and the aggrieved party may seek damages or enforcement of the contract terms in court.

The other options describe different legal concepts or scenarios that do not directly relate to a breach of contract. A mutual agreement between parties represents the initial establishment of a contract rather than a breach. A legal negotiation process refers to discussions or bargaining that may occur before an agreement is reached. A type of court settlement typically involves resolving disputes after they arise, but it does not directly define a breach. Thus, the most precise definition of a breach of contract is indeed the failure to honor a binding agreement.