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Why might a court render a contract invalid?

On Behalf of | May 26, 2022 | Litigation Defense

Contracts protect you when you do business. If the other party fails to keep their side of the deal, the document can help you hold them liable in court.

Provided that is, that your contract is all in order. If not you could find the court comes down on the other party’s side causing you further financial grief aside from that caused by the initial breach.

Why do courts overturn contracts?

Here are some contract mistakes that could leave you vulnerable:

  • It is too one-sided: Contracts need to benefit and be fair to both parties. If for example, your provider claims the price you hold them is well below the market rate, the court may consider it unfair.
  • It has expired: You typically want to sign contracts for a fixed term as you may need to renegotiate terms and prices. Make sure you renew them before they run out.
  • It is unclear: Use precise language so you both know what you agree to. Where language is imprecise, courts tend to take the side of the person accused of the breach rather than expecting them to have read your mind.
  • It is illegal: You cannot hold someone to anything that requires them to break the law.

The best way to avoid contract issues is to seek legal help to review them before signing. If you still end up with problems, you will again need help to understand your options to resolve them.