A breach of contract situation occurs when:

A breach of contract occurs specifically when there is a violation of the terms outlined in the contract. This means that one party has failed to fulfill their obligations as agreed upon in the contract, whether that's not delivering goods or services, failing to make payments, or not adhering to agreed timelines. For a contract to be legally binding, both parties must comply with its terms; a breach signifies that one party has not upheld their end of the agreement.

Looking at the other options, negotiating breakdowns do not necessarily imply a breach but rather indicate that parties could not reach an agreement. Misunderstanding the terms of a contract could lead to disputes, but it does not constitute a breach if parties haven't acted contrary to the contract. Lastly, not signing a contract means there is no contract in the first place, so there couldn't be a breach since there is nothing to violate. Thus, the essence of identifying a breach lies solely in the violation of the specific terms established in the contract.