Naperville Business Lawyer Discusses Breach of Contract Defenses

Throughout my career as a business lawyer, I have seen the extent to which a major legal dispute can have on a business’s sustainability. Breach of contract lawsuits can be especially harmful to a business’s bottom line. Contract litigation can be expensive, but in some cases, it may be less costly than paying damages to remedy the breach. If you have been accused of violating a business contract, speak to an experienced business lawyer to get personalized guidance regarding the best way to defend against breach of contract allegations.

Contracts Containing Major Mistakes May Be Unenforceable

Business contracts should be written with great care and attention to detail. Furthermore, business owners should have major contracts reviewed by a qualified business lawyer to ensure that mistakes that could invalidate the contract are not being made. When a business contract contains a mutual mistake, this means that both parties relied on a flawed assumption when entering into the contract. If the court finds that a mutual mistake occurred, the contract is not enforceable and therefore neither party could bring a successful breach of contract claim. If a unilateral mistake is made, meaning that only one party was mistaken, the contract may still be valid. However, if one party intentionally caused the other party’s mistake or knew about the other party’s mistake when entering into the contract, the contract may be unenforceable.

Defending Your Business Against a Breach of Contract Claim

Contracts that were entered into through fraud are not enforceable. A party accused of a breach of contract may claim that the contract was fraudulent because the other party intentionally misrepresented facts or failed to disclose pertinent information. The defendant may also claim that the contract was only agreed to under duress or through undue influence. Another defense to breach of contract claims is illegality. This means that the contract contained provisions that would require the defendant to violate the law.

“Frustration of purpose” occurs when an unexpected event occurs that makes it impossible for a party to fulfil its contractual obligations. If this is the case, the frustrated party may be able to cancel the contract without paying damages. A party accused of breach of contract could also claim that the plaintiff took actions which were illegal or unethical when pursuing the breach of contract claim and should therefore be ineligible to receive relief.

Contact a Naperville Business Law Attorney

The best way to avoid disputes over business contracts is to have an experienced business lawyer help you negotiate and draft your business agreements. the Gierach Law Firm has helped countless clients form strong, effective business contracts. If you have been accused of breach of contract, our firm is also equipped to represent you during business contract litigation. Call our office today at 630-756-1160 to schedule a confidential consultation with a knowledgeable DuPage County business lawyer.

Sources:

Investopedia

Business Law Basics