How to Break a Contract Agreement

A contract is a legal agreement between two or more parties that obligates all signers to perform a specific action. Contract may be between two individuals, two entities or some combination thereof. When a party to the contract breaks the agreement without a valid legal reason, he is said to have breached the contract. The remaining parties may then file a claim to force that party to abide by the contract or sue for a resolution. However, under certain circumstances a party may break a contract without legal consequences.

Difficulty:

Moderate

Instructions

1. Demonstrate that the contract is unconscionable. An unconscionable contract improperly favors the interests of one party at the expense of the other. For example, an employment contract that favors the employer over the employee might qualify as unconscionable if you can establish that the contract was so unfair, a reasonable person would not have signed it if he had any other choice. Even if you knowingly signed an unconscionable contract, you may still have just cause for breaking it--especially if you can demonstrate that the favored party had a perceived advantage and you had no choice but to accept the terms.

2. Show that you weren't legally able to sign the contract. If either party was under age 18, under the guardianship of another person, under the influence of alcohol or mind-altering substances, not of sound mind or under great duress at the time the contract was signed, you can break the contract on the grounds that it was never legally valid.

3. Show the contract is illegal. If it was made under illegal pretenses, the contract is mechanically void--even if the contract since became legal. Agreements to perform illegal services, conceal an illegal act or otherwise violate the law are invalid. You can break an illegal contract on the grounds that the contract itself is illegal.

4. Demonstrate the other party did not enter into the contract in good faith. A valid agreement requires that all parties act in good faith for the duration of the contract. For example, if you contract to buy a sailboat and the other party gives you a toy boat instead, the seller did not act in good faith. If you can prove the other party did not intend to act in good faith, you can break the agreement.

5. Agree with the other party to break the contract. You can legally break a contract at any time if all parties involved agree to set it aside. You will need to solicit permission from every party involved. Draft a new document that voids the original contract and have each party sign it.

References

• "Contracts: Cases and Materials"; E. Allan Farnsworth, et al.; 2008.