?List and define the defenses to a breach-of-contract action. Give examples of the use of each defense.

Question

What will be an ideal response?

Answer 1

The defenses that can be raised to a breach-of-contract action are:•Lack of genuine assent-This defense is used when the defendant did not genuinely agree to the contract by reasons of mistake, fraud, duress, or undue influence. An example of undue influence would exist where Grandma Smith changes her will and leaves her entire multi million-dollar estate to her nurse, Jane, who constantly complains how impoverished she is.•Unconscionability-This is a contract that is not enforced because of public policy because it is so oppressive to one of the parties, often because the other party has vastly superior bargaining power and presents the terms of the agreement on a "take-it-or-leave-it" basis. An example would be where an uneducated and economically disadvantaged customer buys a refrigerator on an installment plan promising to pay $50 a month for five years. The customer does not realize that by signing the agreement she has obligated herself to pay $3,000 for a $500 refrigerator. If the customer failed to make payments and the seller sued, a court could refuse to enforce the contract on the grounds of un conscion ability.•Statute of Frauds-This statute requires certain contracts to be in writing to be enforceable (specifically, contracts for the sale of land, contracts made in consideration of marriage, contracts for the sale of goods over $500, contracts assuming another's debts or obligations, and contracts that are impossible to perform within one year). Thus, if any of these types of contracts are made verbally, the contract will not be enforced in court. For example, assume Kathy and Bob enter into a prenuptial agreement in which Bob agrees that he would not be entitled to Kathy's trust fund if they divorce. If this prenuptial agreement is not put into writing, a court will not enforce it, and Bob would be entitled to seek Kathy's trust fund or a portion of it in a divorce proceeding.