What Can Void a Contract?
A contract is an agreement between two or more parties and is enforceable by law. Contracts may be written, verbal or implied. Contracts specify what the parties in question will or will not do, and usually involve an exchange of services, money or property. An implied contract occurs when it is understood that goods or services will be exchanged, based on the circumstances, even if it is not expressly stated. In most states, contracts that can be satisfied within an year or less do not have to be written in order to bare the force of law.
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Breaking a Contract
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Contracts involve promises between two or more people or parties. They should not be entered into lightly because they a legally enforceable. There can be civil and, sometimes, criminal penalties for breaching a contract. Violating the terms of a contract can expose a person to potential lawsuits and financial loss. However, there are circumstances in which a contract may be rendered void, meaning it is no longer enforceable. Additionally, there are often terms expressed within a contract that may explicitly specify when the contract may be voided.
Validity of a Contract
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In order for a contract to be legally enforceable, it must be valid. A contract is not valid if it involves illegal activities. For example, a promise to supply funds in exchange for transporting drugs or contraband cannot be enforced by law and, therefore, no contract exists. Likewise, depending on the laws of the individual state, winnings from gambling or games of chance are not enforceable.
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Preexisting Conditions for Voiding a Contract
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A contract is generally valid and cannot be voided if it was entered into legally. However,there are facts and circumstances in which an individual may enter into a contract that may render it void if discovered. For example, minor children cannot enter into a contract. A contractual agreement made with a person who is under the age of 18 can be invalidated if the person shows she was a minor at the time the contract was made. It may also be shown that an contract was made when one of the parties was under duress or otherwise not of sound mind. This can be a very difficult standard to prove, and the laws typically presume a person to be competent to give consent unless they can prove otherwise. Mental health history may be used to show someone is not competent, or facts may be presented to show a person was coerced into entering the contract. The burden of proof in these situations is quite high.
Fraud or Misrepresentation
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If it can be proven that one of the parties purposefully misrepresented himself or his terms to induce the other party to enter the agreement, the contract may be voided. When a person or persons enter a contractual agreement under fraudulent circumstances, the offending party is said to have acted in bad faith and since there was no intention to fulfill the contract, it may be voided by the affected party.
Mistakes and Impossibility of Performance
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If both parties agree that they made a mistake in entering the contract, they may void it. If only one of the parties believes that she made a mistake, she will likely be considered to be negligent, but she will still be responsible for fulfilling her terms of the contract. However, if unforeseen circumstances arise that render one of the parties unable to meet his terms, he may be able to void the contract.
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References
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