Not All Agreements Are Created Equal: When Contracts Can Be Challenged
We rely on contracts every day, from buying a coffee to signing a lease. But what happens when an agreement seems unfair or based on a misunderstanding? The law recognizes certain factors that can render a contract unenforceable.
Here are some key situations where a contract may be challenged:
- Misrepresentation: If one party makes a false statement that tricks the other into the agreement, the innocent party may be able to void it.
- Mistake: There are different types of mistakes that can impact a contract. If both parties share a mistaken belief about something fundamental, the contract may be void. Similarly, a mutual mistake about a key fact can render it unenforceable. Generally, a mistake by one party only won’t void the contract, unless the other party took advantage of it. In extreme situations, if someone signs a contract believing it to be something entirely different (like a receipt), they may be able to challenge it.
- Illegality: Agreements to perform illegal activities are simply not enforceable. Even if a contract starts out legal, if its performance becomes illegal, it may be rendered void.
It’s important to remember that the specific application of these factors can vary depending on location and the unique circumstances of the agreement. If you have concerns about the validity of a contract, consulting with a legal professional is always recommended.
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