I’ve Been Accused of Breaching a Contract, What Can I Do?A breach of contract can be excused when the contract is found to be void. There are many grounds for voiding a contract, and you should consult an attorney to determine if any of them are applicable to your case. Can a Contract Be Voided where One Party Was a Minor?In general, minors cannot enter into contracts. In most states, someone is a minor if he or she is under 18, though there may be variations. Therefore, if a minor signs a contract but later wants to get out of it, he or she can usually do so. For this reason, it is a good idea to have the minor’s parents sign the agreement if you don’t want it voided in the future. Can a Contract Be Voided where One Party Lacked Mental Capacity?A contract can be unenforceable if a person lacked mental capacity entering into it. Determination of mental capacity will vary from state to state. Sometimes, courts will look at whether or not the person understood what he or she was doing at the time of contract creation. Other courts will look at whether or not the person had control over their actions at the time of contract creation. What Does it Mean to Be Under Duress or Undue Influence to Sign a Contract?Duress occurs when a person is influenced to sign a contract under pressure. Undue Influence occurs when a dominant party exerts excessive pressure on a weaker party to sign a contract. What Does it Mean when Somebody Commits a Fraud or Misrepresentation in Creating the Contract?In general, a party engages in fraud when he or she misrepresents a material fact to induce another party to act or refrain from acting towards formation of a contract. Persons charging other with fraud must prove that the person making the representation knew or should have known that it was false, that he or she intended for the other party to rely on it, and that the party did in fact rely on it, resulting in damages. What Is a Material Fact in the Fraud Context?A material fact is one that affects the judgment of the party upon signing the contract. Can Failure to Disclose Facts Be a Deemed Fraud or Misrepresentation?Sometimes, a party’s failure to disclose information can be deemed fraudulent. What Happens when There Is a Mistake in Creating the Contract?A mistake occurs when parties have a mistaken belief about a fact upon entering into a contract. If only one party is mistaken, it is a unilateral mistake, and generally contract performance is not excused. In a bilateral mistake situation, both parties are mistaken, and the contract will generally be void. What Happens when a Contract Has an Illegal Purpose, or Violates Public Policy?If the terms of the contract run counter to public policy or existing law, the contract will be unenforceable. For example, a court will not enforce a contract for the sale of illegal firearms Is a Contract Void if it Is Unconscionable?A contract is void if it is unconscionable. What Happens when Circumstances Change or there Are Important Overiding Events that Occur?When something happens that makes it impossible to perform the duties of the contract, parties may be excused from performance. Just because the event rendered performance more difficult, however, does not mean that it is impossible. A party may also be able to excuse performance when an important overriding event has frustrated the purpose of the contract. Do I Need a Lawyer for my Breach of Contract Issue?
Contract law can be quite complicated, and defenses to a breach of contract may vary between states. An attorney can help determine whether there is an appropriate defense when you are accused of breaching a contract. |