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Three powerful defenses to a breach of contract claim

On Behalf of | Mar 11, 2024 | Business Law |

Contracts make the business world function efficiently. While these written agreements can clearly spell out expectations and obligations in business dealings, the terms of a contract aren’t always upheld. When this happens, breach of contract lawsuits can crop up. If you find yourself a defendant in one of those cases, then your business reputation and your financial stability are on the line. That’s why it’s crucial that you do what you can to protect your interests in a breach of contract case.

What defenses can you use in your breach of contract case?

The specific defense that you use in your case is going to depend on your unique set of circumstances. However, here are some of the most common defenses used in these cases that you might be able to rely upon:

  • Impossible performance: Here, you argue that due to the circumstances at hand, it’s simply impossible for you to fulfill your obligations under the contract’s terms. This may be due to a natural disaster, some other act of God, or a market-wide shortage in supplies.
  • Fraudulent inducement: You can avoid a breach of contract finding if you can demonstrate that the other side lied to you or misconstrued the facts with the intent of inducing you to accept the terms of the contract. This is fraud, so you shouldn’t be held to live up to your side of a wrongful bargain.
  • Wrongful deeds: If the other side didn’t get paid or didn’t receive specific performance under the contract because they were doing something wrong themselves, they shouldn’t be able to hold you accountable for that, which is where this defense comes in.

Develop the breach of contract defense that’s best for you

There are several other ways to defend against a breach of contract case. To maximize your chances of successfully defending yourself in your case, you need to know the options and how to pick the one that best suits the facts. If you need help with that, then please continue to read our blog and our website.