When two parties enter into an agreement in which certain obligations must be fulfilled, it is a business contract. However, one party fails to fulfill its requirements, it is known as a breach of contract. Depending on the terms of the agreement, a breach of contract can include when a party fails to perform in a timely fashion, does not perform per the agreement or doesn’t perform at all.
In a breach of contract lawsuit, the court must determine whether or not there was a valid legal reason for the violation of the agreement. Some common defenses against a breach of contract lawsuit include:
Fraud
The court may find a contract fraudulent if the agreement misrepresented facts or concealed material facts deliberately. The deal is not valid if the plaintiff fails to disclose vital information to get the defendant to sign an agreement.
Undue influence
If one party has power or an advantage over the other party and uses that power to force the person to sign a contract, this is an example of undue influence.
Duress
Similar to undue influence, duress occurs when one party threatens another party using physical force or other threats to get a person to sign a contract. For a deal to be valid, both parties must sign it of their own free will.
Error in the contract
While a mistake made by the defendant won’t invalidate an agreement, if both parties of the contract made an error regarding the subject matter, it could be enough to cancel it.
Unfortunately, when it comes to business contracts, things don’t always go according to plan. If you are facing accusations of a breach of contract, an attorney can help you sort out the details of your case and help you establish the right defense.