NALA Certified Paralegal Practice Exam

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Prepare to ace the NALA Certified Paralegal Exam with our comprehensive quiz. Engage with multiple-choice questions and enrich your understanding through hints and thorough explanations. Get ready to take your paralegal career to the next level!

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Failure of a party to a contact to perform the obligations assumed in the contract is called:

Lack of contractual capacity
Breach of contract
An illegal contract
Fraud

The correct answer is: Breach of contract

When two or more parties enter into a contract, they make certain promises and commitments to each other. Failure to fulfill these promises and commitments is known as a breach of contract. Option A, lack of contractual capacity, refers to a situation where one party does not have the legal ability to enter into a contract. Option C, an illegal contract, is a type of contract that violates the law. Option D, fraud, is a type of deceitful or dishonest act done with the intention to deceive or trick the other party into entering the contract. None of these options fully capture the concept of a party failing to fulfill their obligations in a contract. Therefore, the correct answer is B, breach of contract.