Contract Defences

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Alison Ward in August 2018.

This section describes some of the basic grounds in common law and statute law that can help a party get out of a contract.  

Client problems

• Client did not understand the contract they were signing.

• Client was “forced” into signing a contract.

• Client signed a contract, but says they were misled about the extent of their liability.

• Client misunderstood a contract.

Summary of the law

Even with the basic elements of a contract present (see the Contracts Overview), common law and statute law provide a number of grounds for a party to avoid having a contract enforced against them. These defences to contract actions give the defending party a legal excuse to get out of the contract. Without such defences, the contract would be legally enforceable. Remedies to enforce contracts are discussed in the section on Contract Remedies. (See also the sections on Opting Out and Cooling-off Periods and  Unfair or Deceptive Practices.)

Defences versus causes of action

This section covers defences only. Defences are the grounds upon which a consumer can defend a legal action by someone seeking to enforce a contract. This is different from a “cause of action”, which is a consumer’s right to bring a legal action themselves. In some instances, some legal principles can be both defences and causes of action, depending on who is bringing the action. For example, if a consumer refuses to make payments called for in a contract, they may be able to make a defence on the grounds of unconscionability (see below). If the consumer has already paid for the goods or services, they could also use the grounds of unconscionability to bring a legal action (or “cause of action”).

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