Contracts are necessary if you want your business to operate with efficiency. However, your contracts are only as powerful as they are detailed in negotiation and enforcement. That means that you need to be thoughtful in the terms you agree to in a contract, but even when you play it safe you could find yourself on the receiving end of breach allegations. What should you do in these circumstances? Let’s take a closer look.
Key defense strategies when you’ve been accused of breaching a contract
Depending on the facts of your case, you might have several defense options available to you when you’ve been accused of breaching a contract. This includes each of the following:
- It’s no longer possible for you to adhere to your obligations under the contract due to something like a natural disaster, an act of God, or supply chain issues. To succeed here, you just have to show that you can’t abide by the terms of the contract under normal circumstances.
- You were duped into signing the contract because the other party fraudulently induced you to agree to its terms. Here, you have to show detrimental reliance and the intent of the other party to mislead or lie in order to secure your agreement to the contract.
- The statute of limitations has run, meaning that the alleged aggrieved party didn’t bring their claim quickly enough.
- The other party acted in a wrongful manner that would render it fundamentally unfair for you to adhere to the agreement.
- There’s been a mutual mistake of fact that renders the contact untenable.
Effectively defend yourself against allegations of breach
There’s a lot on the line when you’ve been accused of breaching a contract. That’s why you need to be diligent in building your defense to these sorts of allegations. By doing so, you’ll hopefully protect your business and its reputation far into the future.
