Are There Defenses to Breaching Business Contracts?

 Posted on April 07, 2023 in Business Law

Every business – whether a small family-owned business or large corporation – will have situations where it will be entering into a contract with another entity. In a perfect world, the two parties sign the contract and everyone lives up to their agreement. Unfortunately, it is not a perfect world and everyday issues come up and contracts are breached, requiring the injured party to pursue legal action against the other. Sometimes the injured party is the one that breaches the contract, while in other cases, it is the other party. Regardless of which side your company is on, understanding what type of breach you are dealing with and having a skilled business attorney representing you is critical to the outcome of the case.

What Are the Types of Contract Breaches?

There are three types of ways a contract can be breached. The first type is referred to as a material breach. In this type, the issue is serious enough that the law excuses the party that was injured to breach their part of the agreement.

The second type of breach is referred to as a partial breach. With a partial breach, the law says that the issue is not serious enough to warrant either party from breaching their part of the contract.

The final type of breach is referred to as an anticipatory breach. These types can be the hardest type to prove because the breaching party has not actually breached the contract yet, however, the potentially aggrieved party suspects they are going to.

Are There Legitimate Defenses to Breaches of Contract?

If there has been legal action filed against your company accusing it of breaching a contract, there are legitimate defenses the court may accept:

• Fraud – If the alleged injured party was perpetuating fraud on the accused party when the contract was signed–either by making false statements or not disclosing required information–the court could accept that as a legitimate defense if it can be proven that the alleged injured party committed the fraud deliberately.

• Duress – In a situation where someone signs a contract because they were under some type of threat or force by the other party, the court could invalidate the contract and there would be no breach.

• Statute of Limitations – Every state has its own laws regarding how long a person has to file a civil lawsuit for breach of contract. In Florida, a party has five years to file a breach of contract lawsuit. If it has been more than five years, the court will dismiss the case.

Contact Our Florida Business Lawyer for Legal Assitance

If your company has been accused of breach of contract, make sure you have a skilled Fort Lauderdale, FL business attorney representing your best interest. Call The Elliot Legal Group, P.A. at 754-332-2101 for a confidential consultation.

Source:

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0095/Sections/0095.11.html