Contracts are agreements between two or more private parties which create mutual legal obligations. A contract may be written or oral and it is important to be aware that an oral contract is more challenging to enforce and should be avoided when possible. Show
There are some types of contracts which are required to be in writing in order to be considered valid. For example, contracts for an amount of money over $500. In order to be valid and enforceable, contracts are required to have certain elements, including:
A contract must also include provisions for the time or event when performance must be made and the terms and conditions for the performance. In order for the parties to fulfill their obligations under the contract, they must perform their duties. There are certain types of contracts which fall under the Statute of Frauds and will not be enforced unless they are in writing. These types of contracts include:
The majority of contracts are governed by state statutes. It is therefore important for individuals to review local laws if a contract issue arises. What is Considered a Breach of a Contract?A breach of contract occurs when a party fails to fulfill their obligations under the contract. If one party violates a contract, the other party will likely suffer economic losses. For example, if an individual hired a construction company to complete a project by a specific deadline and that company failed to do so, the individual who hired them will likely suffer a financial loss due to that failure. There are numerous options which may be available to the non-breaching party to compensate them for their losses. The non-breaching party may be able to:
Which remedy is awarded as well as the amount of compensation will be determined by the court or jury. What are Equitable Defenses for a Breach of Contract?When two or more parties enter into a contract, they make a promise to uphold their end of the bargain based upon the terms of the contract which are agreed to by the parties involved. If one party fails to perform their duties under the contract as they agreed to do, they may be held legally responsible for a breach of contract. In the majority of breach cases, the non-breaching party files a lawsuit which seeks monetary damages that they suffered as a result of the breach. In some cases, however, monetary damages will not provide the non-breaching party with proper compensation. For these individuals, one available alternative is to seek an equitable remedy in a breach of contract lawsuit. What is an Equitable Remedy?An equitable remedy is designed to provide legal relief to a non-breaching party in a contractual relationship. The majority of breach of contract lawsuits seek monetary damages. There are, however, some situations in which money alone will not properly compensate the non-breaching party. In these types of cases, there are several alternative options. The most commonly awarded equitable remedies include:
Are There Any Defenses to Equitable Remedies?As in the majority of civil lawsuits, there are several possible defenses which may apply to a lawsuit which is seeking an equitable remedy. Many of these defenses can also apply to lawsuits which seek monetary damages. Defenses which may be available to equitable remedies include:
If a non-breaching party seeks either monetary damages or equitable relief, it is important to ensure that none of the violations above apply to the party’s actions during the contractual process. If that is done, a court is more likely to approve the equitable remedy. Do I Need a Lawyer to Help with Equitable Remedy Defenses?It is essential to have the assistance of a contract attorney for any issues, questions, or concerns you may have related to an equitable remedy. Legal issues may quickly become complex and overwhelming, and contract issues are no exception. This is further complicated by the fact that each state has its own laws which govern contract breaches and may define contract terms in different ways. Your lawyer can advise you of the laws in your state, review your contract, and determine what remedies may be available. Your lawyer will represent you in court should a dispute arise related to your contract.
Jennifer joined LegalMatch in 2020 as a Legal Writer. She holds a J.D. from Cumberland School of Law and has been a member of the Alabama State Bar since 2012. She is a certified mediator and guardian ad litem. She holds a B.A. in Criminology and Criminal Justice and a B.A. in Spanish, both from Auburn University. Jennifer’s favorite part of legal work is research and writing. Jennifer enjoyed being a Law Clerk for a distinguished Circuit Judge in Alabama. She is a stay-at-home mom and homeschool teacher of three children. She enjoys reading and long evening walks with her husband. What is an example of a defense to equitable remedies at law?In U.S equitable defenses are available for relief at law where the remedy sought is one "at law". Mistake, fraud, illegality, failure of consideration, forum non conveniens, laches, estoppel, and unclean hands are a few examples of equitable defenses.
What is an example of an equitable remedy?A typical example of an equitable remedy is monetary loss. The party who has been wronged may receive money as compensation for their losses, even if the other party does not have enough money to pay. There are two types of remedies in contract law: equitable and legal.
What are the equitable defenses?Equitable defenses are usually affirmative defenses asking the court to excuse an act because the party bringing the cause of action has acted in some inequitable way. Traditionally equitable defenses were only available at the Court of Equity and not available at common law.
Do equitable defenses apply to legal claims?Recently, this Court has twice held that the equitable defense of laches may be applied only against equitable claims, not against legal ones.
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