What does "default" mean in the context of contracts?

In the context of contracts, "default" refers to the failure to fulfill a contractual obligation. When one party does not adhere to the terms established in the agreement, such as failing to make payments or meet specified deadlines, they are considered to be in default. This situation can lead to various legal consequences, including the right for the non-defaulting party to terminate the contract, seek damages, or pursue legal action to enforce the terms of the agreement.

The other choices do not accurately capture the legal definition of "default." Signing a contract without understanding involves issues of consent and capacity, but does not pertain to the failure to meet obligations. Negotiating terms of a contract refers to the discussions and adjustments made before the contract is signed, which is unrelated to defaulting on agreed terms. Renewing a contract automatically deals with the continuation of an existing contract rather than the breach of its terms. Thus, the definition of default aligns specifically with the failure to meet contractual responsibilities.