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An unenforceable contract is a valid contract that the court chooses, for specific reasons, not to enforce. An unenforceable defense is commonly used in contradistinction to void the contract or make it voidable. Below explains a what makes a contract void or voidable:
- Lack of Capacity. It's expected that both (or all) parties to a contract have the ability to understand exactly what it is they are agreeing to. If it appears that one side did not have this reasoning capacity, the contract may be held unenforceable against that person.
- Duress. Duress, or coercion, will invalidate a contract when someone was threatened into making the agreement. In an often cited case involving duress, a shipper (Company A) agreed to transport a certain amount of Company B's materials, which would be used in a major development project.
- Undue Influence. If Person B forced Person A to enter into an agreement by taking advantage of a special or particularly persuasive relationship that Person B had with Person A, the resulting contract might be found unenforceable on grounds of undue influence.
- Misrepresentation. If fraud or misrepresentation occurred during the negotiation process, any resulting contract will probably be held unenforceable. The idea here is to encourage honest, good faith bargaining and transactions.
Sep 1, 2023 · Here are some characteristics that may cause a contract to be voidable: One or both parties, change their mind about the agreement. One party was duped, pressured, or misled into signing the contract and uses their right to challenge its legality. One or both parties decide to rescind the consent.
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Sep 14, 2023 · Reasons a Real Estate Contract May Be Deemed Unenforceable. Several situations can render a real estate contract unenforceable. Some of the common reasons include: Lack of Capacity.
Jun 8, 2022 · In the case of a real estate contract, that consideration would be the title (of the seller) and a security deposit (of the buyer). Without that consideration, the contract is unenforceable. The seller of real estate must have a legal right to sell the property.
Aug 12, 2024 · A void or null contract means a contract that cannot be enforced (unenforceable) by any of the parties. That happens when one of the elements required for legal contracts has not been met. A void contract is considered not executable by design.
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Nov 3, 2020 · Many people find out that the contract they signed is not valid in a court because courts have high standards for contracts. A contract can be rendered unenforceable because of circumstances surrounding its signing, the terms of the contract, and events that happen after the signing of the contract.
