Have you entered into a contract with another party, but they have dishonored the agreement or acted in bad faith?
When you enter into a contract with another party that is supposed to pay you some money, there is a chance that they may fail to honor the terms of your agreement.
A breach of contract occurs when the other party violates a legally binding agreement or contract. In all cases, violating such an agreement is a civil wrong, and you have a right to a legal cause of action to recover your money.
However, this process can be complicated, more so when the debtor raises breach of contract defenses. That’s where Michigan debt collection attorneys at Hanna and Jarbo come in to save the day.
What Is an Affirmative Defense to a Breach of Contract?
When you bring legal action, such as a lawsuit against a debtor who has breached a contract, they will defend the grounds in which they failed to honor the contract’s terms, also known as affirmative defenses.
Affirmative defenses/ particular defenses /performance excuses are reasons or circumstances the defendant gives to eliminate or mitigate the liability for breaching the contract. In other words, the debtor does not contest they breached the contract, but they will give reasons that will render the lawsuit moot. In simpler terms, the debtor is saying, “Sure, I breached the contract, but here are my reasons and circumstances why you (the debtor) shouldn’t win this lawsuit).”
What Are The Defenses To Breach Of Contract?
There is no official list of defenses against a breach of contract in Michigan. It all depends on the debtor’s defense and their imagination.
The most common defenses to breach of contract we have witnessed and dealt with include:
- Statute of limitations – Michigan’s Debt Management Act, you have up to six years sue the debtor of a breach of contract, failure to which renders your lawsuit moot.
- The terms of the contract are grossly unfair.
- You did not present the contract in writing, violating Michigan Statute 566.132(1).
- There was a mistake in the contract.
- You didn’t finalize the contractual terms.
- The debtor lacked the capacity to contract.
- You fraudulently prompted the debtor to enter into a contract.
- The contract is not legal.
- The contract violates public policy if enforced.
- You obtained the contract fraudulently.
- There weren’t any damages caused.
- Accord and satisfaction – you both are satisfied with the contract’s performance so far.
- The debtor signed the contract under duress.
- The terms are no longer possible to honor due to unavoidable circumstances, such as an act of God.
- Quantum Meruit – since there was no formal written contract, the money they have paid you is equal to the services rendered.
Fortunately, Hanna & Jarbo has the necessary expertise and experience to handle such defenses to maximize the possibility of the debtor paying your money in full.
When Should You Hire An Attorney?
Debt collection laws and processes in Michigan are intricate. If done wrong, such as collecting the debt yourself or hiring debt collectors, you might violate the Fair Debt Collection Practices Act, and that will cost you or land you in trouble.
Therefore, the following are the situations that warrant you to hire an attorney:
- When your debt is older than six years
- To follow the legal avenues in debt collection, such as negotiation
- When you wish to bring legal action against your debtor
- When a debtor raises defenses to contract enforcement
- When recovering large sums of money
- When the debtor is a large organization that has legal resources
- If you need legal advice about debt collection or interpreting Michigan’s debt collection statutes
- When you need to send your debtor demand letters
- When you don’t want to deal with the debtor directly
Regardless of the amount of debt, we advise you to hire an attorney whenever you have issues with debt collection. Our expert debt collection attorneys at Hanna & Jarbo have the expertise you require to recover your debts the proper way.
Do you Need Professional Help?
When a debtor raises all defenses to breach of contract, you might end up losing substantial amounts of money.
Let our unparalleled excellence help you reclaim past due, charged-off, and seriously delinquent debt.
Our unrivaled record of accomplishment puts us at the forefront as the best debt collector in Michigan. If you need any professional help or more information on how we can help, don’t hesitate to contact us.
Specialty Practice Areas
We are more than just handling affirmative defenses your debtors raise due to breaching legal agreements.
If you are proprietor, contractor, or business owner, we are your best bet at recovering all your debts, and in:
- Supplier Account Receivables
- Returned Checks (including charge-back credit card payments)
- Landlord-Tenant Debt & Money Judgments
- Charged-off or non-paying commercial credit portfolios
- Construction debts
- Auto loan and deficiencies
- General loans, notes, and credit lines in default
- Secured and unsecured judgments or liens
- Foreign (non-Michigan) judgments
- Mortgage/Land Contract deficiencies
- Other commercial paper receivables
Benefits of Working with Us
The truth is, debt collection in Michigan is messy, complicated, and needs a successful expert to handle it with the delicateness it calls for in line with the Michigan Debt Management Act and FDCPA.
As the unrivaled debt collectors, from skip tracing to collecting in the whole Midwest, you will enjoy:
- Invaluable experience and expertise to bring down any defenses against contract formation
- The most affordable and pocket-friendly rates
- Eighty-five percent: The highest success rate of any debt collector in the whole Midwest
- We save you money by getting it right the first time
- You pay us when we recover your debt, and never out of pocket
- You get to work with one of the Best Law Firms in the country, as named by U.S. News & World Report
What Does Working With Us Look Like?
At Hanna & Jarbo, we are experts and the best in our field. When we set our goals on recovering your debt, you can rest assured that’s what we will do.
Working with us is as easy as:
- Set up a free consultation call. We’ll explain everything you need to know about debt collection.
- Give us your debtor’s information. We need to know what to collect. Invoices, IOUs, leases, or promissory notes. Whatever you’ve got, we can use it.
- Sit back and relax. You don’t have to do anything further while we track down and collect your debt. We’ll do whatever is necessary to get your money back.
Contact us today
Don’t hesitate to contact us and gain valuable insights for combating debt recovery. You have nothing to lose and every debt to recover.