Ways to Strike a Contract

Some contracts must be in writing.

Contract law dictates specific rules for the valid formation of a contract. Where there's an oral contract or a written contract, there must be offer, acceptance and something called "consideration." Consideration refers to the essential element of a contract requiring that parties to a contract receive some benefit, or value, as a result of contracting. If any of these elements are missing, or if other problems occur in the formation of a contract, a court can strike the contract.

Illegality

A contract can be struck if the contract is formed illegally or involves illegal subject matter. For example, a contract is illegally formed if one of the parties is not of consenting age, which is 18 years old in nearly every jurisdiction. Additionally, if a contract involves illegal subject matter, it is unenforceable. An example of a contract involving illegal subject matter would be a contract for the sale of drugs.

Writing

Contracts can be struck if they are the type of contract that must be in writing. Although oral contracts are enforceable, some contracts must be in writing to be enforceable. For example, contracts for the sale of real property, contracts for marriage and contracts under which performance cannot be completed within one year are unenforceable by their terms.

Formation

Valid formation is important regarding the enforceability of contracts. For a contract to be valid, there must be an offer, an acceptance of that offer and actual consideration. Additionally, there must be a mutual assent, or a "meeting of the minds." In other words, parties to a contract must understand, exactly, what they're agreeing to. If either party is unsure as to the fundamental meaning of the contract, the contract can be struck by a court.

Voidable Contracts

Some contracts are "voidable," meaning a court will declare a contract unenforceable if one of the parties to a contract used undue influence, misrepresentation or fraud to get the other party to agree to the contract. If one party misrepresents the subject matter, the contract is likely voidable. For example, if a contract is for a specific item, but the item delivered is something so non-conforming that it goes to the heart of the bargain, the contract is voidable. Where a party to a contract commits fraud, or where a party to a contract exerts undue influence on the other party, the contract can be voided. For instance, where one party threatens or blackmails another party into agreeing to the contract, that contract is voidable.

References

• FreeAdvice: What Are the Key Elements of a Binding Contract?
• The Free Dictionary: Voidable
• The Free Dictionary: Void