Exceptions that can make any contract null and void

Consider for a moment that your company has signed a poor contract. Due to their overwhelming workload, many small business owners neglect to carefully review contracts. Others discover that a persistent salesperson is pressuring or coercing them into signing a deal. In either case, the company owner feels the need to void a contract.

Can your company leave this contract and continue to operate? 

Unfortunately, there is a lot of false information out there about voiding contracts. Yes, there are situations in which a contract can be void. They are not what you believe, no. Remember the “parol evidence rule” from our earlier article? A legally valid contract should clearly state the intentions of both parties. A contract cannot be revoked just because you no longer like it. 

The purpose of this page is to clarify some of the erroneous information that has been spread about the exceptions that can render a contract unenforceable. Anyone who is about to engage in a contract already has a contract in place, or is considering entering into a contract will find this to be especially helpful. You should become familiar with these exceptions regardless of whose side of the contract you are on. Without further ado, please: 

contract amendment made later. This is clear. Existing clauses may be voided by any in writing, agreed to revisions to the original contract. 

If it does not conflict with or alter the main contract, a linked agreement is. 

a prerequisite for contract performance that has to be met before the deadline. A contract can be void, for instance, if it requires that a commercial space be remodelled before the lease begins but no redesign takes place.

Errors in the contract’s creation (such as fraud, duress, mistake or illegality). This is an extremely intricate caveat that could likely be covered in hundreds of blog posts. We’ll attempt to make things simpler. In essence, a contract that is illegal cannot be enforced. No contract can be signed by a kid or someone who has been declared mentally incompetent. The list is endless. 

The parties’ intentions with regard to any unclear clauses in the contract. Basically, make sure the contract is clear about everything. If building parking is required by a contract, specify how many spaces are required. Ask about the bandwidth restrictions if there is included wi-fi. 

there are issues with the idea. A contract could be dependent on a payment, for instance. The agreement can be voidable if that payment is missed.

an error in the written instrument in dispute reflecting a prior valid agreement. A contract that wrongly refers to another contract (for instance, the new contract claims the previous deal required 15 units when it actually required only 12) may be void. 

Please note how frequently the word “can” is used in this passage. Every contract is unique and needs to be taken into account specifically. There may be exceptions, but it does not necessarily mean your company will fall under one of them. We find small businesses functioning under confirmation bias far too frequently, simply seeking out data that will support their viewpoint. It is beneficial to be aware of all the variables in a delicate situation.

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