What Makes A Contract Illegal?

Most contracts that people are entered into are legally binding, and all parties who sign have a duty to fulfill any obligations outlined within the contract. However, some contracts are illegal or invalid. There are many different types of contracts, ranging from those that involve real estate transaction to employment contracts. It is important that you hire an attorney who is well-versed in the industry law that is applicable to your contract.

Here are some things that may negate the validity of a contract, and tips for protecting yourself when entering a contract–

When is a Contract Is Illegal or Invalid?

A contract may be illegal or invalid when–

  • The purpose of the contract is to achieve an illegal end. If the purpose of the contract is to achieve a legal end, such as a drug deal, murder, or other crime, then the contract is illegal by its very nature.
  • If one party is coerced into entering and signing a contract, the contract is not valid. Parties must be of sound mind, and enter a contract of their own will, in order for the contract to be enforceable. Many times this situation may necessitate the need of a Power of Attorney document. If there is an ill family member or minor involved, another person may be appointed, or arrangements were made before an illness, to look out for the best interest of the individual.
  • Misrepresentation or fraud. A contract may be invalid–and the actions described within the contract may even be illegal–if misrepresentation or fraud is present. For example, if a contract is for a sale of a product that is misrepresented (the party believes they are buying gold when in fact the seller is offering silver, but does not make this clear), then the contract will likely be invalidated.


Tips for Protecting Yourself when Entering a Contract

If you are entering a contract and want to ensure that the contract is both legally valid and enforceable, the best thing that you can do is to thoroughly read a contract, review it, and hire an attorney to represent you throughout the process. An attorney can both help you to understand the provisions of a contract, and make any amendments to a contract prior to signing. Your attorney will also advise you should a stipulation of a contract be breached by you or the other party.

Contact Our Law Firm Today

If you have questions about contracts and how to ensure that a contract you are entering into is both legal and valid, or if you have questions about what to do in the event of a breach of contract, contact our lawyers today for a free consultation. We have offices nationwide, including in New York City, Long Island, California, Delaware, Florida, Illinois and Texas.

There is no obligation and there are no upfront fees. In fact, we only recover a fee if we win your case. We strongly recommend that you have a lawyer review any contract before signing it.