A contract describes the agreement between two parties and what obligations they have to each other. Contracts may require the transfer of goods or the performance of certain services. Contracts can even impose restrictive covenants that require that either party not do specific things.
In a breach of contract scenario, one party to a contract will claim that the other has failed to fulfill its obligations. They may seek financial compensation in the form of damages. What are some of the defenses possible when one party claims that the other breached a contract?
Many defenses come from the contract itself
Some of the most effective breach of contract defenses depend on the language included within the original agreement. Perhaps there was a force majeure clause included, and there was some kind of natural disaster or other unpredictable events that delayed the fulfillment of the contract.
Other times, there could be clauses allowing for adjustments to the original agreement. Referencing specific language within the contract can sometimes help establish that no breach has actually occurred or that the situation justifies a deviation from the prior agreement. In some scenarios, an individual or business will use their personal extenuating circumstances to develop a response to a breach of contract claim.
Litigating a dispute about a contract breach could become very expensive and damage the reputation of the parties involved in the disagreement. Sometimes, mediation or negotiations between the parties in the midst of a dispute will result in a new agreement, eliminating the need for a defense in court. Naturally, this is provided that both parties follow through with the terms of their new agreement moving forward.
Reviewing a contract with the professionals at Phillips & Mille Co., L.P.A. can be a good starting point for those worried about breach of contract claims and hoping to avoid expensive penalties. Reaching out to our firm today could help to more quickly and amicably resolve the matter.