In the construction world, parties that enter into a legally binding contract are expected to fulfill their end of the agreement. However, there are some cases where what should be a valid contract, can be found unenforceable in court. There are a few different circumstances that make up enforceable contracts, and we will be discussing them in this article.
Lack of Capacity
If one of the parties involved in the contract does not have the ability to completely understand what they are agreeing to, a contract can be found unenforceable. The “lack of capacity” idea was enacted to make sure an individual is not taken advantage of because they might not have the ability to make a logical decision. As Jacksonville construction attorneys, we’ve listed a few examples of someone who might lack the capacity to fully understand a contract:
- An individual who is too young (a minor)
- An individual who does not have the mental abilities to completely understand the implications of the agreement
In the construction industry, non-disclosure occurs when one of the parties does not disclose an important or crucial fact about the binding agreement. Whether or not the party was obligated to disclose the information will be determined by the court. Something the court will consider is if the other party had easy access to the information on their own.
Most of the time, a contract can be found unenforceable just because a simple mistake was made by one or both parties. If just one party made an error, it’s known as unilateral mistake. If both parties made a mistake, it’s known as a mutual mistake.
Under some circumstances, duress can invalidate a contract. If an individual is experiencing duress while in a contract, or is being coerced into a contract (blackmail), the court can find the contract unenforceable.
During the contract negotiation process, if there are any signs of misrepresentation or fraud, the contract can be held unenforceable. An example of misrepresentation is a party saying something untrue or concealing something important, similar to non-disclosure.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.