Question: What are defenses to enforcement of a contract?
The defenses to the enforcement of a contract are mistakes of fact, misrepresentation, undue influence, and duress. Fraud can be loosely defined as a misrepresentation. Under the influence normally happens when certain people may have a great deal of control over a party and utilize that control in order to unduly influence a person to enter into a contract. Duress is simply a threat or perceived threat to induce a party to enter into a contract. For example, if someone puts a gun to your head and makes you sign a contract, that contract is not enforceable because you were operating under duress. Duress may also come in a number of other forms that may be considerably more subtle. Impossibility comes about when it truly becomes impossible to perform a contract due to something that is unforeseen by the parties. These defenses are important in contracts because they provide a critical incentive for the formation of complex commercial agreements and, thereby, facilitate trade and economic growth.