What makes a contract valid?

Sometimes when one party accuses another of breaching a contract, it ends up in court. The first thing a judge will do is to check the validity of the contract. If the contract is invalid for any reason, then there can be no breach.

Here is what they will look for when deciding:

Is it still in effect or expired?

Think about the warranties you get from product manufacturers. All too often, when you need to claim, you’ll find they’ve already expired. All good contracts need a date limit, so check to see what yours say.

Did you both sign it?

Offering to make a deal does not constitute a deal. The other party needs to accept it. Typically that means they also sign the paperwork, but in some instances, a court might consider a verbal agreement sufficient – although it’s harder to determine if there actually was one.

Was there a bargain made between the parties?

You must each give the other something of value in exchange for something else. If a judge cannot understand what one party is getting out of the contract, they may declare it invalid.

Did both parties freely consent?

Sometimes a judge has reason to believe that one party pressured the other into signing. It’s a fine line, just look at the pressure tactics that salespeople use, but if the judge thinks one party forced the other into signing, then they can invalidate the deal. The same can apply if they feel one party was incapable of understanding what they were signing. 

If you have contract issues, getting early legal help allows you to work out the best way to approach the situation to get the outcome you deserve.