If you are a business owner, you have probably run into a few business disagreements along your path. In a business, there are many contracts that need to be signed and determined, which means that there will also be various business disagreements and possible breaches of contracts. A breach of contract doesn’t have to result in a business lawsuit, but it can help to know what your defenses would be if a lawsuit were to occur.
What Are My Defenses After a Breach of Contract?
One common way that a breach of contract could occur is if one of the parties decides to not sign the business agreement. A contract can be void if one of these parties is also coercing, threatening, creating false statements, or illegally persuading another party. There are a few defenses that could help in this situation:
- Signing under duress: To claim this defense, one of the parties has to show that assent or agreement to the contract was encouraged by a severe threat of illegal or wrongful action. A big example of this is blackmail; proving that you were blackmailed into signing a contract is a great defense to show that a breach of contract was necessary.
- Undue influence: This is a type of persuasion that causes someone to enter an unfair transaction. Undue influence is usually done by a person who has a relationship to the victim and tries to use that relationship to take advantage and get something from the victim.
- Misrepresentation: This defense focuses on dishonesty in bargaining. It could be anything from a false statement, a deliberate withholding of information that the party has the responsibility to disclose, and a concealing action.
Any of these defenses can help prove that the party decided to void or breach a contract for a good reason. If you have signed or built a California contract and that contract has been breached, our law firm could help you. Our attorneys at Kesluk, Silverstein & Jacob can help explain contract law and how you can make a claim for breach of contract damages.