What are the defenses to a breach of contract claim?

A breach of contract occurs when one party to a contract fails to fulfill their contractual obligations. In North Carolina, a defendant accused of breaching a contract can raise several potential defenses. The first defense is called “impossibility of performance.” This means that due to unforeseen circumstances, the defendant was unable to perform the required obligations under the contract. For example, if a storm destroyed the subject matter of the contract, then it would be impossible to perform the contract. The second defense is “fraud.” This means that the terms of the contract were either misrepresented or that a party lied about a material fact that was necessary for the contract. In such a case, the contract would be deemed invalid and unenforceable. The third defense is “illegality.” This means that the terms of the contract are illegal under North Carolina or federal law. For example, if a contract contains an illegal provision, such as a clause requiring the performance of an illegal act, then the contract would be invalid. The fourth defense is “lack of consideration.” This means that one side of the contract has failed to provide what was promised by the other party. For example, if one party promised to pay a sum of money and then failed to do so, then the contract would be breached. Lastly, the fifth defense is “release or novation.” This means that one of the parties was able to get the other party to agree to a release or change of the contract in some way. For example, if one party agreed to pay a lesser sum of money in exchange for the release of the other party from the contract, then the contract would be deemed released. In a breach of contract, a defendant may raise any of these five defenses to absolve themselves of their obligations under the contract. If any of the defenses are successful, then the defendant will not be held liable for breaching the contract.

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What are the defenses to a breach of contract claim?

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