What are the defenses to a breach of contract claim?

Defenses to a breach of contract claim in Delaware involve disproving that a valid contract existed in the first place. If a valid contract was indeed formed, then the non-breaching party must still prove the breach occurred and that they suffered a loss as a result. If a valid contract did not exist, the breeching party may use one of the following defenses: lack of consideration, lack of capacity, fraud, failure of a condition precedent, statute of frauds, or impossibility of performance. Lack of consideration involves a breach of promise due to the promise being made without any exchange of value—such as money, goods, or services—between the parties. Without consideration, there is no valid contract. Lack of capacity involves a party not having the necessary mental capacity to enter into a contract. Fraud is a false statement of fact made by one party to another that induces the other party to enter into a contract. Failure of a condition precedent is when one party to the contract fails to meet a condition in the contract prior to the other party fulfilling their portion of the agreement. The statute of frauds is a law that requires certain types of contracts to be in writing in order to be legally enforceable. Impossibility of performance is where a contract is impossible to perform due to some event that was beyond the control of both parties. In this case, an act of God, a change in law, or the death of one of the parties can make the contract performance impossible.

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