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Civ. at 513. Example: The contract is for commission of murder. The plaintiffs had agreed to be bound by the terms of a mineral lease following the settlement of a lawsuit with the FDIC. The Beneficiaries may argue that they did not know all of the material facts to make an informed decision in accepting the trustees conduct and/or they were misled by untrue statements by the trustee. A defense of unclean hands can be used in any legal proceeding, although it is typically used in cases where one party feels they have been wronged and seeks to enforce a contract or seek fair and equitable remedies. Fort Worth 2011, no pet.). But if the plaintiff takes too long to file their lawsuit, a defendant may be able to assert an equitable defense known as laches. App.San Antonio 2014, pet. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. However, the wife submitted evidence that she was led into the agreement by the husbands fraud and threats. Beneficiaries should not generally be allowed to lay behind the log, have knowledge of a trustees conduct, not object to such conduct for a period of time, and then later complain in litigation of that conduct. Breach of Contract Defenses Checklist (TX) | Practical Law 1911)) (internal quotation marks omitted). Beneficiaries may argue that they were compelled to accept the trustees improper conduct and that their acceptance was not voluntary. at 764. The remedies for a breach of contract include: A remedy specified in the contract itself, such as liquidated damages; An award of money damages; Restitution; If the non-breaching party lied or made misrepresentations to the other parties during the negotiation and formation of the contract, a court may refuse to grant the equitable remedy that the non-breaching party seeks; Mistake, which occurs when a factual or legal mistake is made that makes the contract unenforceable; and. Also, the beneficiaries may also argue other theories prevent the use of the equitable defenses. Contracts which will not be performed within a year; A promise to pay the debt of a decedent; and. Civ. If terms of the contract are unreasonably unfair or oppressive to one party in a way that indicates abuse during the formation of the contract, a court may refuse an equitable remedy. A party can impliedly waive the other partys breach where he fails to object to a deviation by the other party from the strict terms of the contract. 2000, pet. 1969)). Co. v. State, 1 S.W.3d 264, 266 (Tex. Vessels, 823 S.W.2d at 765. Civ. There are, however, some situations in which money alone will not properly compensate the non-breaching party. For example, a beneficiary may claim that the trustee has compensated itself too much. We've helped more than 6 million clients find the right lawyer for free. Depending on the case at hand, the unclean hands defense can be either an equitable defense or an affirmative defense. in Spanish, both from Auburn University. Ideology or Antitrust? Specifically, the court found [i]n this case, by agreeing to be bound by the lease, [plaintiffs] did not ratify the tortious conduct that cause them to have to accept the lease or else lose the property.