Efficient And Effective Business Litigation

How can I defend myself if I am accused of breach of contract?

On Behalf of | Aug 9, 2022 | Contract Disputes |

As a business owner, you are looking out for your bottom line. Your company could be sunk if you find yourself on the losing end of a breach of contract lawsuit. There are arguments, however, that you can make in your defense that may allow you to move forward from a breach of contract lawsuit on the right side.

Three examples of defenses to breach of contract lawsuits

One argument you may be able to make in your defense against a breach of contract lawsuit is that performing your part of the agreement is no longer possible. For example, if you entered into a contract where you agreed to provide widgets to a ship, but the ship is sunk in a storm, you may be able to argue that performance is no longer possible because the ship no longer exists.

A second argument you may be able to make in your defense against a breach of contract lawsuit is that the agreement is based on a mutual mistake. This means you agreed to something different than what you and the other party to the contract meant to. For example, if you agreed to sell someone 4-inch widgets but the contract stated 10-inch widgets — an error that went unnoticed by both parties — this may be considered a mutual mistake.

A third argument you may be able to make in your defense against a breach of contract lawsuit is that the agreement does not contain consideration. Consideration is the exchange of something of value. For example, in a contract for the exchange of widgets for money, the money and the widgets constitute the consideration exchanged. Gifts are not considered consideration, nor is voluntary work performed for nothing in return.

Know your defense options in a breach of contract lawsuit

A breach of contract lawsuit brought against you does not have to mean the end of your business. There are defenses against a breach of contract lawsuit that may be available that allow you to prevail in the claim brought against you so you can continue business operations as usual.