When parties have entered into a legally binding agreement and one party fails to fulfil their obligations under the terms of that agreement, they are said to be in breach of the agreement. The significance of a breach depends upon the relative importance of the term that has been breached. For example, breach of a warranty (an assurance given by one party that specific promises will be honoured) may give the right to damages, but will not normally give the right to termination. Breach of a condition will give the other party the right to terminate the agreement. Distinguishing whether the contractual term is a condition or a warranty will depend upon the nature of the agreement. See also Contract and Terms and Conditions.