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Reasons a contract may not be enforced

On Behalf of | Sep 27, 2021 | Contract Disputes and Litigation |

Companies in Los Angeles rely on others to ensure that their business is a success. They need to rely on other companies who provide parts, products or services that the business needs to operate their own business. They also need to rely on customers to purchase the products and services that they are selling. They expect that they will receive what they were told they would receive in exchange for what the business is providing to them.

It would be nice if companies could simply know that everyone they rely on will do what they say they will do, but this is unrealistic. That is why it is important for companies to have well-drafted contracts, which will allow them to enforce the agreements that they have with other companies and customers. Having a contract does not mean that the agreement will automatically be enforced though.

Voiding a contract

There are reasons that a court may void a contract. Reasons a contract may be void are:

  • Duress – this can be a defense if people signed the agreement based on threats
  • Undue influence – this is usually a defense if there a big power difference in the relationship and the victim accepted terms that were adverse to their interests
  • Misrepresentation – this can be a defense if false statements are made or information withheld which induced acceptance of the contract.
  • Unconscionability – this is usually a defense if one side did not have a choice but sign the contract even though they are agreeing to terms which may shock the conscious.
  • Mistake – if both parties to the contract base the contract on an assumption that turned out to be false. The mistake needs to have a material effect on the contract
  • Force Majeure – this defense arises if circumstances beyond the control of either party makes it impossible for either party to fulfill their obligations in the contract.

There are many different contracts that companies in Los Angeles need to run their business. It is important that these contracts are drafted properly to ensure that they will not be voided when they try to force them. Experienced attorneys understand how to draft valid contracts and may be a useful resource.