Question $20$

$2$ pts

What is the difference between a contract defense versus a contract breach?

A defense is a reason for one person to successfully allege a contract was, in fact, breached by the other party. The defense is the argument the non$-$breaching party raises to justify her getting out of the contract.

There is no difference. In reality both have the same effect of bringing a contractual obligation to an end for one or both of the parties.

A breach refers to inferior performance of the contract's terms. A contract defense refers to a legal reason for a person to get out of a contract without incurring liability. A contract defense is generally something that comes about during the formation of the agreement.

A defense to a contract always creates a contract breach but a breach does not always give rise to a contract defense.