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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.
Apr 9, 2020 · What makes a contract unenforceable is when one party doesn’t understand the terms or how they will be bound by it. Lack of capacity commonly applies to minors (children under the age of 18), mentally ill individuals or people under the influence of drugs or alcohol.
- Rachel Vanni
Nov 3, 2020 · A contract can be declared unenforceable if a court is convinced that coercion was used to facilitate the signing. An example would be if blackmail was used as leverage to facilitate the contract. Courts can also declare a contract unenforceable when one of the parties to the contract has undue influence on the other.
Jun 30, 2023 · A valid contract that the court can declare as not enforceable for a specific reason is called an unenforceable contract. The most common reason for the defense to declare an unenforceable contract is a contradiction of a contract to declare it void or voidable.
May 22, 2024 · A voidable contract is a formal agreement between two parties that may be rendered unenforceable for any number of legal reasons, which may include: Failure by one or both parties to disclose a...
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Sep 5, 2019 · In this article, we break down the different reasons that a contract may be unenforceable, and how you can avoid them. 1. Duress. Duress involves the threat of force / violence to coerce a person into entering into the contract. This must involve illegitimate pressure, and makes the contract unenforceable.
