What happens if the contract requirements are not met by either party?

When a contract's requirements are not fulfilled by either party, it primarily results in a situation where the performing party may be injured, or disadvantaged, by the non-performance. This injury can manifest in various ways, such as financial losses, missed opportunities, or additional costs incurred as a result of the breach. In contract law, this potential for injury often becomes the basis for claims of breach of contract, leading to remedies like damages awarded to the aggrieved party.

While it's true that a contract can be canceled in specific circumstances, this is not the default outcome for all scenarios of non-compliance. The notion that a contract is automatically valid is inaccurate; contracts must meet certain requirements to remain enforceable. Furthermore, the idea that both parties are penalized does not hold in all cases, as it is generally the party that fails to meet their obligations that faces repercussions. Thus, the focus on the possible injury to the performing party highlights the serious implications of contract non-compliance and underpins the legal remedies available to parties affected by such situations.