When is a contract unenforceable?
There are many conditions that can make a contract unenforceable, such as:
- Lack of capacity: for example, if a party to a contract is a minor, if they are deemed incompetent to enter a contract (e.g. if they are mentally disabled), or if they entered into the contract under the influence of drugs or alcohol.
- Duress or undue influence: if a person was forced or threatened into entering the contract.
- Fraud or misrepresentation: a contract can be unenforceable if it is proven that a party has deceived another about the terms of the contract by telling a lie or withholding the truth, leading to a loss to the other party.
- It is illegal: a contract that involves unlawful acts is unenforceable.
- It is unenforceable under laws that protect consumers
To avoid making a mistake or misrepresenting a term in a contract, it is best to have them drawn up or checked by a lawyer. Speak with Helix Law today to ensure a contract is valid.