No matter how clear and thorough your contracts are, there’s always a possibility that a dispute will arise. Sometimes, the other party will take it a step further and accuse you of breaching the contract. If a court determines you have breached a contract, the other party may be allowed to terminate your agreement and even pursue you for damages. A business lawyer can help craft a defense and protect your business interests while helping you resolve your contract dispute. Here’s a look at some common defenses to breach of contract claims.
A breach of contract can have serious legal and financial consequences. If you’ve been accused of breaching a business contract, you need a Houston business lawyer to protect your company.
Common Defenses to Breach of Contract Claims
When you have a business attorney representing you, it isn’t up to you to craft a defense. However, it may be helpful to understand some of the defenses commonly used in breach of contract cases.
No Valid Contract Existed
You can’t be held responsible for breach of contract if no valid contract exists. In contract law, a contract is valid (and therefore legally enforceable) only if it includes the following elements:
- Offer: One party asks another to enter into a legal agreement.
- Acceptance: The other party agrees to the terms.
- Consideration: Something valuable must be exchanged between the parties.
- Mutual Assent: Both parties must agree to the contract terms and fully understand them.
- Capacity: All parties must be of sound mind and of legal age.
- Legality: The contract must not violate existing laws.
If even one of these elements is missing, your attorney might be able to argue that no valid contract existed.
Lack of Capacity
For a contract to be enforceable, all involved parties must be legally able to enter into a contract. This means that they must have been of legal age and of sound mind when they signed. They also must not have been under duress when agreeing to the contract.
Mistake
In contract law, there are two main classifications of mistakes:
- Unilateral Mistake: One party is mistaken about a material fact of the contract.
- Mutual Mistake: Both parties are mistaken about a material fact of the contract.
The court is generally more likely to void a contract if there is a mutual mistake. However, if one party knew about the other’s misunderstanding and used it to their advantage, the judge may still choose to void the contract.
Fraud or Misrepresentation
If one party deliberately misleads the other when negotiating the contract, the court may determine that the contract is unenforceable.
Duress or Undue Influence
For a contract to be enforceable, both parties must have freely entered into it. If your lawyer can prove that you were coerced or pressured into signing, a court may determine that you did not breach the contract because the contract is void.
Impossibility of Performance
Sometimes, there is an outside event that would prevent anyone from fulfilling the terms of a contract. For example, if your business is located on a street that was completely destroyed by a hurricane, it would be unreasonable for the other party to try to sue you for breach of contract.
Statute of Limitations
The Texas statute of limitations for breach of contract lawsuits is generally four years, with the countdown starting on the date of the alleged breach. If the statute of limitations has passed, your attorney may be able to argue that the lawsuit should be thrown out.
Waiver or Estoppel
In some cases, the other party may have waived their right to pursue legal action. They also may have been estopped from pursuing legal action, meaning they were prevented from doing so based on a past action.
Unconscionability
If the terms of the contract are extremely unfair, a judge might determine the contract is not enforceable.
Need legal help with a contract dispute? Call Weisblatt Law Firm at (713) 666-1981.
Building a Strong Defense
You Can Help Your Lawyer Protect Your Business
While your attorney will handle the majority of building your defense, there are a few steps you can take to support their efforts and protect your business.
Gather Evidence
If your case goes to court, the judge won’t simply believe everything you say — you will need documentation to prove it. Take the time to gather all relevant documents. These may include a copy of your contract, a record of all correspondence with the other party, financial records, and anything else that might help support your case.
Document Performance
If you’re being accused of breach of contract, much of your defense will likely depend on your ability to prove you fulfilled your obligations. Make sure you have documentation showing you fulfilled (or attempted to fulfill) all contractual obligations.
Seek Legal Advice Early
Ideally, you should seek out a business attorney sooner rather than later. Your lawyer will need time to build a strong defense strategy, and the more time you can give them, the better it is for your case.
How a Houston Business Attorney Can Help
While you might be able to navigate a breach of contract claim yourself, it is generally unwise to do so. A business lawyer can help you in a number of different ways:
- Analyzing your case and formulating a customized defense
- Negotiating with the accusing party in an effort to amicably resolve the dispute
- Filing motions and responses to protect your rights and safeguard your business in court
- Representing you if the case goes all the way to trial.
If you choose to handle the case alone, you may not know how to best defend your business. You may end up suffering business losses and owing compensation to the other party.
Has Your Business Been Accused of Breach of Contract?
When You Need Experienced Representation, Call Weisblatt Law Firm
Being accused of breach of contract is especially stressful. In some cases, a business lawyer may be able to help both parties reach a mutually agreeable solution. However, in other cases, the other party may be unwilling to negotiate — and the case might go all the way to court. If it does, don’t panic. Weisblatt Law Firm is here for you. Our lawyers are experienced litigators who will work tirelessly to help your business find solutions.
If you’ve been accused of breaching a contract or you are facing any kind of contract dispute, don’t wait! Call Weisblatt Law Firm at (713) 666-1981 to book a free phone consultation today.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
