What are the defenses to a breach of contract?

In Texas, the most common defenses to a breach of contract are impossibility, impossibility of performance, and illegality. Impossibility of performance occurs when something beyond the control of either party makes it impossible for either party to fulfill their obligations. This could include destruction of the subject of the contract, non-delivery of goods, or a force majeure event. In this case, a party may be excused from performing their contractual duties. Illegality occurs when a contract is determined to be illegal. This could happen if the contract was between two parties who did not have the capacity to enter into a valid contract. Additionally, if the terms of the contract are in violation of the law or public policy, a court may rule that the contract is void and unenforceable. In some cases, a court may also recognize ‘mistake’ as a defense to a breach of contract. This occurs when one party entered into an agreement based on an incorrect understanding of the facts. For example, if one party agrees to a contract based on incorrect information provided by the other party, a court may void the contract and excuse them from their obligations. Lastly, ‘frustration of purpose’ is also a defense to a breach of contract. This occurs when the purpose of the contract becomes impossible or significantly different to what the parties originally intended. This could happen if something outside of the parties’ control forces them to abandon their contractual obligations. Overall, these are the main defenses to a breach of contract in Texas. If any of these situations arise, a party may be able to be excused from their contractual obligations.

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