What are valid defenses against a breach of contract claim

Assignment Help Business Law and Ethics
Reference no: EM131451573

Review the defenses to breach of contract below and write about an instance where you employed or considered using one of these methods and explain what happened.

What are valid defenses against a breach of contract claim?

The most common defenses to enforcement of a contract or liability for damages are as follows:

Enforcement of the contract would violate public policy.

Example: A contract to lease part of a liquor license will not be enforced because splitting a liquor license between two parties and two locations violates the public of the state. See Digesu v. Weingardt, 91 N.M. 441, 575 P .2d 950 (1978).

Performance of the contract has become impossible or the purpose of the contract has become frustrated.

Example: Dan hires Tom to paint his house, but the house burns down before the contract can be performed.
The contract is illegal.

Example: The contract is for commission of murder.
The contract lacks consideration.

Example: Tom promises to give $20 to Dan, but Dan does not have to do or give anything in return.
The contract was obtained by fraud.

Example: Blue Company refuses to sell to Red Company, so Red Company sends Pink Company to buy goods from Blue Company and turn them over to Red Company.

The contract limits the amount of damages that can be recovered.

Example: The contract states that in the event of a minor breach, the damages will be $100 regardless of the actual loss.

The contract contains a unilateral mistake that was material to the agreement and the other party knew or should have known of the mistake.

Example: Maria paid Tom a lot of money for a painting signed "Picasso". Tom knew that Maria thought Pablo Picasso painted it, when really Arnold Picasso was the printer, but Tom did not correct the misunderstanding.

The parties have accepted the contract performance, or a substitution for the performance, as adequate. This is called accord and satisfaction.

Example: Tim owes Frank $100 on a contract debt. Frank agress to accept a radio worth $50 in exchange for discharging the debt. When Frank changes his mind and sues for the additional $50.00, the Court will not enforce the original contract because Frank has accepted the radio as performance of the contract.

One (or both) of the parties lacked capacity to make the contract.

Example: A party to the contract is 16 years old or is mentally incompetent.

Verified Expert

In order to be bound by a contract, a person must have the legal ability to form a contract in the first place, called capacity to contract. A person who is unable, due to age or mental impairment, to understand what she is doing when she signs a contract may lack capacity to contract. For example, a person under legal guardianship due to a mental defect completely lacks the capacity to contract. Any contract signed by that person is void.

Reference no: EM131451573

Questions Cloud

Analyze how information systems affect the firms strategic : Impacts competitive rivalry, such as pricing, promotion, and distribution.Enables or dissuades new entrants.Enable customer to achieve greater bargaining power.
What do you see as the most important stakeholder : What do you see as the most important stakeholder?
Were critics right to expect more change than they saw : BP chief executive Tony Hayward argued that "changing the culture of a 100,000 person company couldn't happen overnight." He had been in charge.
Securities both plot on the security market line : What is the risk-free rate if these securities both plot on the security market line?
What are valid defenses against a breach of contract claim : What are valid defenses against a breach of contract claim and Review the defenses to breach of contract below and write about an instance where you employed or considered using one of these methods and explain what happened.
Identify your position and select two management roles : Identify your position, select two management roles, and explain why they are the most important for the elected official you identified.
Average return and historical volatility of large : Relationship between the average return and the historical volatility of large, well-diversified portfolios?
How can bp begin to restore its reputation going forward : At the age of 14 months old, most children in North America and Europe receive a triple vaccination against three diseases: measles.
Defined contribution retirement plan : Suppose your company’s defined contribution retirement plan allows you to invest up to €20,000 per year.

Reviews

inf1451573

4/14/2017 6:13:09 AM

I am extremely happy with the work that has been finished by the expert and got 98/100 for it. Much obliged to you for your incredible administration and extraordinary work! Will clearly utilize this administration once more!

Write a Review

Business Law and Ethics Questions & Answers

  Legal environment of business caselet

The assignment in Law deals with the topic "Legal Environment of Business". A case study about Mary, a newly joined employee who is working in the USA and Europe. She faces few issues at her work place in Europe and tries to talk to her manager who s..

  Business ethics & legal issues caselet

This assignment is about the concept of Business Ethics & Legal Issues. The laws relating to these can be found in Antitrust laws. These laws are concerned with those large corporations which have a majority of market share, mergers and acquisitions.

  Questions on business law and ethics

Examples of securities that are exempted from the registration provisions of the 1933 Act and involving misstatement of material facts in a prospectus.

  Discuss the doctrine of ratification of pre-incorporation

With the aid of a decided cases, discuss the doctrine of ratification of pre-incorporation contract.

  Discuss the extent of phoenixing activity

It has been estimated that about 6,000 phoenix companies operate in Australia, costing government and the community hundreds of millions of dollars per year and impacting on individuals.

  Application of law to facts

Company Law, Application of Law to Facts and Conclusion.

  Question on business law and ethics

This assignment related to business law.

  Questions on business law

Answer all the questions under business law.

  Iidentify the issue raised by the facts

Iidentify the issue(s) raised by the facts, identify the relevant legal principles, apply the relevant legal principles to the facts, reach a conclusion.

  Evaluation of software development

Prepare a report and present an evaluation of the subsequent methodologies for software development in terms of cost, resources and time.

  Business value and ethics

Business value and ethics,  Bart agrees to put Sam's Super Bowl champion-ship autographed football in his sports store to sell for $1,500. Sam agrees to pay Bart a 15% commission for selling the ball. If Joe comes in the sports store and offers Bart ..

  Explain what is meant by income by ordinary concepts

Advise what tax consequences arise in respect of the payments.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd