What are the defenses to a breach of contract?

A breach of contract occurs when one or both of the parties does not fulfill their obligations as outlined by the agreement. In the state of Arizona, the legally recognized defenses to breach of contract are: lack of capacity, miscommunication, illegality, impossibility of performance, fraud, duress, or undue influence. Lack of capacity means one or both of the parties did not have the legal capacity to enter the contract. This means the party did not have the financial ability or mental understanding to meet their obligations. Miscommunication means the misunderstanding between both parties can cause a breach of contract. This can happen if there are misunderstandings around expectations, terms, or conditions of the contract. Illegality means that the contract is void due to the illegality of the contract itself. This might happen if one or both parties are asking the other to do something illegal. Impossibility of performance means that it is literally impossible to carry out the contract. This may happen due to an unexpected event that might prevent the parties to fulfill their obligations. Fraud means that either one or both of the parties used false information to induce the other party into the contract. This can be a false statement, false documents, or false promises. Duress and undue influence are situations where one party is forced or coerced into entering the contract against their will. In these cases, the contract is not legally valid. These are the common defenses to breach of contract in the state of Arizona, though other situations may apply.

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