Breach of Contract and Possible Defenses

We live in an imperfect world, and contract breaches are bound to happen.

A business contract is a binding legal agreement between two or more parties agreeing to undertake certain duties and/or obligations.

There are numerous types of business contracts into which parties routinely enter: partnership agreements, service agreements, employment agreements, independent contractor agreements, agreements for the sale and purchase of assets, commercial or residential lease agreements, etc. In an ideal business world, parties would enter into agreements, the outcome would be beneficial to all, and no disputes would arise. We are not in a perfect world though, and breaches of contract occur all the time. If you believe you have been the victim of a breach of contract, a business law attorney can assist you in understanding all your contract dispute-related matters and help you determine what actions need to be taken to resolve your legal problems.

What Happens Next?

A breach of contract occurs when one party to an agreement fails to fulfill their obligations under an agreement – such breaches can occur when a party fails to perform entirely, fails to perform in a timely manner, or fails to perform in accordance with the terms of the agreement. When a breach of contract is alleged or occurs there are a few courses of action that can be taken:

1. One may try to recover damages due to financial harms that resulted because of the breach (compensatory damages);
2. One may wish to have the contract enforced (specific performance);
3. Parties may seek to cancel or terminate the agreement (termination); or
4. Alternatively, parties involved in contract disputes may seek out mediation, arbitration or litigation as means to resolve such disputes.

Defenses That May Be Raised in Contract Disputes

When one is sued for breach of contract under Florida law, there are numerous defenses that may be raised. Some defenses include, but are not limited to, the following:

Impossibility of Performance. Here a party may assert that that that performance of the contract is now impossible due to an act of God or the law, or that the purpose of the contract has been frustrated due to unforeseen events not caused by or under the control of the parties, and such events destroy the value or purpose of the agreement.

vDuress. Courts will consider a contract invalid if it was induced by lies, force or undue influence. Florida courts will not recognize a contract as valid if it can be shown that a party’s free will was taken away and they were forced and pressured into signing the contract.

Fraud. The contract was obtained in a fraudulent manner, such as through deceit or trick, and as such one party was disadvantaged when agreeing to the terms of the contract.

Mutual Mistake. The contract contains a mistake, stating terms distinct from what the parties intended.

Statute of Limitations. Under Florida law, breach of contract claims must be filed within 5 years; after such a term expires, the claim is permanently barred and injured parties will not be able to recover any damages.

Are You Involved in a Contract Dispute?

It is always best to seek out experienced attorneys to assist you in resolving your contract disputes and determine what defenses may be available and most practical in the circumstances of your case. The Law Office of Peter M. Feaman, P.A., located in Boynton Beach, Florida is here to assist you with all your contract disputes, providing personalized and dedicated service in order to resolve your legal problems in the most positive manner. Contact us today.

Peter M. Feaman provides legal advice and representation to clients in Palm Beach County, and communities throughout Florida. Contact the firm online or call 561-509-5165 to schedule a consultation.