Grounds for invalidating a contract
Courts may refuse to enforce a contract for a number of reasons.
So how does the law determine which promises are enforceable contracts and which are not?
Duress is defined as the imposition, oppression, undue influence or the taking advantage of the stress of another whereby one is deprived of the exercise of his/her free will.
The party asserting duress must prove the allegation by clear and convincing evidence.
In approving a proposed settlement agreement, a court must determine that the agreement is not the outcome of fraud[i].
Fraud exists if all of the following elements are present: Similarly, an unintentional nondisclosure without an intention to deceive will not constitute fraud.
However, a compromise can be invalidated for fraud if one party deliberately conceals facts with the intent to induce the action of other party.
The duty of disclosure is more comprehensive when there is a fiduciary relationship between the parties to the compromise.
It can potentially happen even if both parties seemingly agree to all of the contract's terms.
Here are five common errors that can make contracts unenforceable: To make sure your contract isn't rendered unenforceable by a court, you may want to sign up for a personal legal plan like Legal Street, which includes attorney contract reviews (up to 10 pages) and on-call access to local lawyers who can answer a wide range of legal questions.