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What are some common defenses to breach of contract?

What are some common defenses to breach of contract?

Most business dealings in Bloomfield Hills are based on written contracts. These contracts can involve a significant amount of money, so if you are accused of breaching a contract you may be very concerned for the future of your business, and you may be left wondering what your options are. The following are some common defenses to breach of contract claims.

Fraud as a defense

When claiming fraud as a defense to a breach of contract claim, you are essentially saying that the contract itself should be deemed invalid because the other party did not disclose important information related to the agreement or lied about an important fact related to the agreement. However, the fraud must be deliberate for this defense to work.

Duress and undue influence as a defense

Duress takes place when one party forces the other party to sign the contract against their own free will, either through physical force or other threats. Undue influence takes place when one side to the contract is in a position of power over the other side to the contract and uses that power to force the other side to enter into the contract. Duress and undue influence invalidate contracts, as one of the principles of a valid contract is that each side entered into it freely.

Statute of limitations as a defense

The statute of limitations is the amount of time as imposed by law that a person has to file a lawsuit. While the statute of limitations for breach of contract claims varies by state, if one party can prove this time period has passed, this could serve as a defense and the case can be thrown out of court.

Breach of contract claims can be serious, but defenses are available

Breach of contract claims often involve a great sum of money, so it is important to take them seriously. This post cannot guarantee the effectiveness of any specific defense in any specific case. If you have been served with a breach of contract claim, you may want seek the advice of a professional, so you can better understand your legal rights and options.