A contract dispute can leave your business facing several risks. An allegation of breach can not only threaten your bottom line, but it can also damage your business’s reputation. Together, the losses can be significant, and it may take you a long time to rebuild if you are indeed found in breach of contract. That’s why you need to know how to aggressively defend yourself when you’re accused of straying from the terms of a contract.
Breach of contract defenses
Fortunately, you might have strong defense options at your disposal when an alleged breach occurs. Here are some strategies that you may be able to implement in your case:
- Argue that the contract was never finalized and instead was simply an agreement to agree, such as a letter of intent
- Argue that the terms of the contract are unclear or otherwise ambiguous
- Put forth evidence showing that there was a mutual mistake of a material fact
- Present evidence that shows that you were fraudulently induced to enter into the contract, which generally requires a showing of false information with the intent of manipulating you to enter into the contract
- Argue that the contract, if enforced, is so one-sided as to be fundamentally unfair
- Claim that estoppel applies, especially when the other side made some sort of verbal statement modifying the terms of the contract and you relied upon that statement.
Protect your interests when accused of breach
These are just some of the arguments that you may be able to use in your breach of contract case, so there may be others that are applicable to your case. That’s why it’s crucial that you understand the law and how it applies to your set of circumstances. Only then can you create the legal strategy that is best for you and your business.