Kentucky Breach of Contract Overview

A Kentucky breach of contract is a violation of contract provisions that occurs against a contract formed under Kentucky law. Such a breach will occur for similar reasons, and have similar consequences to, a breach in other states, although there may be breach-related details exclusive to Kentucky, so it is best to not make assumptions about Kentucky contract law.

Defenses Against Breach of Contract Claims

If a charge of breach of contract is brought against you, there are several defenses you may mount in Kentucky, as well as other states, such as:

  • That the contract was not in writing. Although oral contracts may be acceptable in many cases, there are some situations in which a contract must be put in writing, such as when land sales occur, when over $500 of goods are sold, when a contract exceeds the life of a party involved, when a promise is made for another’s debt, and when the contract cannot be completed in one year. Also, oral contracts are often more difficult to enforce.
  • That the contract is not the agreement that was intended. Contractual obligations may be avoided if it can be shown that arrangements were made beyond the scope of the contract that changed the original intent of the contract.
  • That the contract was made in an unsound mental state. If one of the parties were intoxicated, under the influence of a substance, or of unsound mental capacity while signing the contract, the contract is unlikely to be viewed as enforceable.
  • That undue influence or duress was exerted. If the breaching party was placed under extreme intimidation to sign a contract, a court may rule the contract to be void.
  • That a mistake was made in the contract’s creation. If both parties errored in drawing up the contract, the terms of the contract may be ruled unenforceable.
  • That the contract is unconscionable. If it can be shown that no reasonable person would have entered contract due to the unfair terms of the contract, any breach of the contract may be ruled invalid.
  • That unconscionable bargaining power was used. If one party lacked a proper understanding of the consequences of their actions, it is possible that any contract they signed would be void.

Breach of Contract Damages

If you are bringing a charge of breach of contract against a party, there are several different types of damages you may be able to pursue in Kentucky, as you would in other states. These include:

  • Compensatory damages. These will cover the losses of the non-breaching party with the purpose of making them whole again.
  • Expectation damages. These cover damages for what the non-breaching party expected to get out of the contract.
  • Reliance damages. These cover damages incurred by the non-breaching party while performing their duty as stipulated in the contract.
  • Consequential damages. These are also called special damages, and they cover losses not directly related to the agreement but which resulted from the breach of contract nonetheless.
  • Liquidated damages. These cover specifically named damages related to the contract, but are only awarded if they are judged to be reasonable.
  • Punitive damages. These are damages whose goal is to punish the breaching party, but they seldom occur in contract disputes.
  • Nominal damages. These are damages that occur not due to any financial damages that occur due to breach of contract, but rather as a means to show that the breaching party was in the wrong.
  • Restitution damages. These are damages awarded when the breaching party benefited from the breach at the non-breaching party’s expense.

Breach of Contract in Kentucky

The purpose of Kentucky contract law is to protect those entering into legal contracts. Like contracts in all states, Kentucky contracts are based upon the idea that a contract involves an offer, an acceptance, and a payment, and that in order to enforce the terms of such agreement, certain punishments must be made available to those who have been wronged by a violated, or breached contract. That said, when dealing with contracts made in Kentucky, the specifics of Kentucky law should be consulted to make sure the correct law is being relied upon.

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