While a contract is being enforced, there can be quite a few defenses being asserted. When a party to a contract is of minor age or is incapable of mental mindset to enter into a contract, the capacity of the partner is a defense to the valid contract. The minor and individual with mental incompetency cannot contract. When there is a disconnect in the contract on account of a mistake made by the parties, the contract can be voided with the agreement not being considered because the minds of the individual contracting were not alike. Fraudulent misrepresentation is another means of defense utilized to enforce a contract. If a claim is being defended in a contract, the defendant may claim that they were convinced to enter into the contract due to fraud on the other party in the contract. When the material facts of the goods or services are misrepresented, they are considered a fraud on the party attempting the fraud activity.
A contract is considered enforceable when a legal remedy can be provisioned if the terms of the contract are not fulfilled as per prior understanding and acceptance. Hence, terms of the contract should be accepted without defense for the contract to be considered enforceable by law. The problems incurred during contract formation with bypass means to resolve them, lack of capacity of the partner contracting, violation of laws relating to fraud clauses that are mandatory in specific contracts for it to be considered enforceable against the defendant are included in defenses.
Following are the defenses for breach of a contract:
Lack of capacity: The parties involved in the contract must have legal ability or capacity to contract and agree to the contract terms. Minors and individuals with mental incompetency cannot contract.
Fraudulent stimulation: Parties involved in the contract should accept the terms mutually. If either party of the contract deceives the required terms of the contract, it shall be observed that fraudulent inducement has happened to agree.
Unconscionable: When pressure is applied while entering into a contract, the contract cannot be enforced. When either party of the contract, who has greater bargaining power, took advantage of the contract’s situation and induced the other party to agree, such contract cannot be enforced by law.
Illegality: A contract agreed between contracting parties should be for legal purposes. When parties of a contract agree to transport drugs between states, the purpose of the contract is not legal and hence cannot be enforced by law.
Duress: Pressure or force cannot be applied to either party while contracting. Both the parties must be free to enter into the contract to argue, bargain, and agree on the contract terms.
Undue Influence: Either party of the contract cannot influence the other party to enter into the contract.
Impossibility: When the terms of the contract are impossible to execute, it is not required to enter into the contract. However, still accepting the terms irrespective of the possibility of completing it shall make the contract not enforceable by law.
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