4 Ways To Defend A Breach Of Contract Suit

Is your business being sued for breach of contract? Breach of contract is a common form of business litigation. Perhaps a vendor feels that you violated your contract with them. Or maybe a customer or business partner has sued you for violating the terms of an agreement. The good news with a business litigation lawsuit is that you have many options for defense. You can raise as many defenses as possible. It's often wise to raise defenses early in the process to encourage the plaintiff to either drop the suit or reach a private settlement. Below are some common defenses in breach of contract litigation: 

The contract was indefinite. One way to defend yourself is to say that the terms of the contract were vague and indefinite. For example, if a vendor has sued you for breaking the contract, you could say there was no definite time limit in the contract, and thus, you were free to leave the contract at any time. You could say that the terms of the contract were never clearly defined. You could present the contract as more of a proposed agreement rather than a contract. If you start poking holes in the contract, the plaintiff's case could appear less solid.

The contract is unconscionable. Another option is to state that the terms of the contract were so one-sided and unfair that the only way to get a fair outcome was to breach the contract. This defense is often used in non-compete contracts. However, it can be applied to all forms of business litigation. Perhaps the contract's time frame was so long, or the terms to exit the contract were so onerous that it was more effective to breach the contract simply. If you raise this defense early enough, the plaintiff may decide that moving forward with the litigation is not worth it.

There is a mutual mistake in the contract. Another common defense is to say there was a mutual mistake in the contract that both sides erroneously agreed upon, and thus, the contract is not enforceable. Perhaps you both agreed on a deliverable that turned out to be infeasible. Or maybe the timelines in the contract were not reasonable. Whatever the reason, find something in the contract that is impossible or highly unreasonable and highlight it as an error that both parties agreed upon. Again, the defense may not win at trial, but if you raise it early, it may force the plaintiff to reconsider their case.

If you're facing a breach of contract suit, contact a business litigation attorney in your area today. They can help you find and raise possible defenses and prevent the lawsuit from going to trial. Contact a business litigation attorney today to start the conversation.