Oregon Construction Contractors (CCB) Practice Test

The correct term for failing to comply with a material portion of a contract is "breach of contract." This refers to a situation where one party fails to fulfill their obligations as outlined in the agreement. Material portions are critical elements of a contract, meaning that their non-compliance significantly impacts the contract's purpose or the other party's rights. When a breach occurs, the affected party may seek remedies, which could include damages or specific performance, depending on the nature of the breach and the terms of the contract.

Choosing terms such as "insufficient funds," "an extension," or "a void of contract" does not capture the essence of the situation. Insufficient funds pertains more to financial capability rather than compliance with contract terms. An extension refers to a time adjustment for performance under the contract, which does not indicate a failure to comply. A void of contract suggests a complete invalidation of the contract due to illegality or lack of enforceability, rather than simply failing to meet certain contractual obligations. Thus, "breach of contract" is the most accurate description of this scenario.