What are the defenses to a breach of contract?

In North Carolina, there are several defenses that can be used if a person is accused of breaching a contract. These defenses are used to show that the defendant did not breach the contract, or that any breach was not their fault. The most common defense to a breach of contract in North Carolina is that of impossibility. This defense holds that the accused person could not fulfill the terms of the contract due to circumstances beyond their control. An example would be if a construction company was prevented from completing a project due to an unforeseeable act of nature. Another defense is that of mistake, and this is generally used when one of the parties made a mistake in terms of the contract. For example, if the contracts mentions a specific item that was later found to be available, but the other party was unaware. The defense of frustration occurs when the parties of the contract agree to do something that is no longer possible for them to do. For example, if a contract was signed before a law changed that made the contract illegal, frustration may be used as a defense. The defense of duress is also available, which holds that the accused was forced to sign the contract. This must be proven to be true and cannot be used to excuse minor issues. Finally, the defense of unconscionability can be used. This holds that the contract is so one-sided that it should be void as being unfair to one of the parties. Overall, these are the main defenses to a breach of contract in North Carolina. In any case, the burden of proof is on the defendant.

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