We have discussed business contracts in detail on this blog – including what constitutes a valid agreement and the types of contract breaches.
In this article, we are going to address 6 common defenses your business can use to defend breach of contract claims.
If you have been accused of breaking a agreement, you want to continue reading.
1. Statute of Limitations
The SOL is the time limit you have to pursue a legal action. A breach of contract lawsuit must be filed within 5 years of the breach in Florida. If not, the claim is permanently barred which prevents any type of recovery.
2. Duress
Duress occurs when you are pressured, forced or coerced into signing a contract. According to Florida law, you can use this defense against breach of contract claims.
3. Implied Covenant of Good Faith and Fair Dealing
The implied covenant of good faith and fair dealing requires every party of a contract to act according to its purpose. While this is a commonly used defense, it should be noted that it will not negate the terms of a valid contract in Florida.
4. Impossibility of Performance
If you are unable to perform as per contract terms due to circumstances beyond your control, this is referred to as impossibility of performance. Florida courts have established this as a legitimate defense to select breach of contract claims.
5. Unconscionable Contract Terms
A contract is unconscionable if the terms are unjust, unfair or outrageous.
6. Unilateral or Mutual Mistakes
A unilateral mistake occurs when one party is mistaken about the terms of a contract. A mutual mistake happens when all parties misunderstood the contract at the time of signing. Under Florida law, a mistake may be a legitimate defense for not performing as obligated.
If you are being sued for breaking a business agreement, you must understand how to defend and protect your business and personal interests. This article addresses a partial list of defenses; one or more may apply to your situation. There may be other defenses available to you that have not been covered in this blog post.
Do not delay! Contact our business lawyers to discuss your legal options. Give us a call at 954-779-7009 or click here to email us.
