When Is a Contract Unenforceable?

When someone is sued for breach of contract, one of the common defenses is that the contract is not enforceable for one of a number of reasons. Even though there is an agreement to perform, courts will not always enforce it if there is something wrong with the contract or the way that it was formed.

Lack of Capacity

There are some people who lack the capacity to enter into a contract. For example, people who are in cognitive decline or minors cannot legally sign a contract. The contracts that they sign will not be enforced. This is why contracts will usually be limited to people aged 18 or over.

Unconscionable Contracts

Courts will also decline to enforce contracts that are so one-sided that they are unconscionable. These contracts typically represent overreach by companies or people with superior bargaining power, and courts do not like them. To be clear, contracts do not have to be evenly balanced to be enforceable, but there is a line. When one party forced another party into an unbalanced contract because of adhesion (such as including a release in a receipt for a transaction), the contract would not be enforced.

Misrepresentation or Fraud

In addition, contracts must be based on accurate and complete information. If there was fraud or misrepresentation of a material fact, the contract will be unenforceable. Misrepresentation is not just making a misstatement. One can omit certain material facts that the other party would need to know before signing a contract, and it would be a misrepresentation. This is often an allegation after real estate transactions.

Contact a Boca Raton Contract Attorney

Before you sign a major contract, or if you are involved in a contractual dispute, you should have an attorney review the document and your situation. For legal help, call the attorneys at Rubino Findley, PLLC, at 561.220.8464 or contact us online.