Once you execute business contracts, you naturally expect other parties to live up to the terms of that contract. However, in some situations, a contract may not be enforceable if any of the following conditions apply:
The other party lacked capacity. If the other party to your contract does not have the capacity to understand what they have agreed to — be it because of a language barrier, age or mental infirmity — the contract can be found to be unenforceable in a court of law.
One of the parties was coerced. If someone is under threat to agree to the terms of a contract, this is coercion and a contract signed under duress may be invalid.
Misrepresentation. If there was any misrepresentation during contract negotiations, a contract may be nullified.
Nondisclosure. If one of the parties is silent about important details regarding the contract, it could be found unenforceable.
Lack of fairness. A contract may be found invalid if any part of the contract is grossly unfair to one of the parties.
Breach of public policy. A contract cannot be legally enforceable if it requires one party to perform illegal acts or to forfeit any rights.
Errors. If an unintentional error has been committed by one or both parties that have a significant impact on the performance of the contract, it could be unenforceable.
Impossibility. If it is impossible for one of the parties to fulfill the terms of a contract due to unforeseen circumstances — an illness or a major disaster — the contract may be nullified.
Johnson Legal PC has successfully represented small to medium size businesses as well as corporations. We understand the ever-changing landscape of the business world and are equipped to quickly adapt and keep clients on track towards organizational goals. Contact us to learn more about how a great corporate attorney can help your business thrive.