The contract you entered into may have seemed like a good idea at the time, but now your situation is different and you are wondering if you can get out of it. Maybe the other party changed, or maybe you never read the fine print, and it turned out to be an unfavorable contract. Whatever your situation is, you need to find out if you are still bound by that contract—especially if you have been served with a breach of contract lawsuit in Texas.
Many business contracts can be challenged based on these top-five breach of contract defenses:
- Fraud. If someone got you to sign a contract by misleading or deceiving you, he or she participated in material misrepresentation of fact. This means that the person intentionally misrepresented something of importance in the contract, concealed it, or withheld it, making the contract voidable and not enforceable against you.
- Duress. If the contract was signed because someone threatened you or blackmailed you, it should not be upheld if you signed against your will. This means that if someone has exercised control over you, forced you, or seriously pressured you to agree to the contract, the use of duress should make the contract null.
- Impracticability. When a person in the contract is unable to uphold the contract terms due to a circumstance beyond his or her control, it is considered impossibility of performance. These things include death of a person necessary to provide a service, destruction of property necessary for performance, or a new law that makes the contract illegal. If any of these three things occur, you should not have to be bound by the contract.
- Mistakes. If there is a mistake in the terms on the contract, if there was an error made on the contract, or a material mistake regarding the subject matter caused you to not perform as obligated, then the contract should be voided, as long as the mistake was mutual.
- Statute of Limitations. The breach of contract claim has to be filed within four years, but contractual provisions could lessen it to two years. A lawsuit shouldn’t be valid if the claim is brought after that time period.
If you and your company are being sued for breach of contract in Texas, it is wise to talk with an experienced Houston business lawyer who specializes in business contracts to determine if you may use any of the defenses listed above to help you get out of the contract.
For more information, please call the Voss Law Firm to speak with a knowledgeable Texas business litigation attorney at (866) 276-6179. You’ll receive a free, no-obligation legal consultation today. Make sure you request a FREE copy of attorney Bill Voss’ book, Business Disputes – Critical Information for All Business Owners.