A countervailable contract is originally considered legal and enforceable, but may be rejected by either party if it is determined that the contract has defects. If a party authorized to refuse the contract decides not to refuse the contract despite the defect, the contract remains valid and enforceable. Most of the time, only one of the parties is affected by the acceptance of a questionable contract in which that party does not recognize the misrepresentation or fraud of the other party. If you would like to discuss your contractual claims, we recommend calling 703-888-1943 or sending us an online message to speak to an experienced commercial litigation lawyer in Alexandria at Binnall Law Group, PLLC. This type of activity led to a lawsuit against Apple (AAPL) in 2012, suggesting that the transactions were part of a questionable contract. If your contract is declared invalid, you must keep copies of all relevant documents, as well as invoices, receipts and other supporting documents. These documents provide important evidence when you bring an action for damages arising from an invalid or voidable contract. Let`s say you sign a contract for the services of a team of contractors who will renovate your office. Entrepreneurs have distorted themselves by telling you that they have received many awards in their sector (when in reality they have not). If this misrepresentation had a material impact on your decision to enter into an agreement with the contractors, the agreement would almost certainly be questionable.

In other words, you could terminate the contract and avoid any liability in the event of a breach. Invalid contracts are generally unenforceable. They are not valid by default and neither party can be bound by their terms. Contracts whose performance has been made impossible are “void”, as are contracts that involve illegal activities. For example, a contract for the purchase of a rare earth metal that is now exhausted cannot remain in place – it is considered void by law and therefore unenforceable. Binnall Law Group, PLLC is a commercial litigation firm based in Alexandria, Virginia, serving a number of clients in Virginia, Maryland and the Washington D.C metropolitan area. We have extensive experience representing the interests of plaintiffs and defendants in a variety of infringement disputes, including those involving circumstances that create a “valid but voidable” agreement. In the case of a questionable contract, one party may be bound by the terms of the contract, while the other party has the right to change its mind. In other words, they can cancel the contract at any time.

Another situation that could make a contract questionable is a mutual error or if important elements are missing from the contract. Contracts that are void mean that they cannot be performed by either party. Essentially, this is a contract that can no longer be used, and the courts will treat it as if there had never been a contract. A problem that may result in the nullity of a contract is the subject of the contract, which is illegal in the respective State or throughout the country. Depending on the conditions and the illegal aspect, one or both parties could be prosecuted. A contract which, although valid at the time of its conclusion, can be terminated later (cf. null contract). Questionable contracts may result from misrepresentation, certain instances of error, secrecy and coercion (see economic coercion; undue influence). Some real estate contracts concluded by minors are also voidable (see Contractual capacity).

The cancellation of a questionable contract is made by withdrawal. It is important to understand the difference between contracts that are voidable and those that are invalid. Although a voidable contract can still be enforced if both parties agree to the terms despite the defects in the agreement, an invalid contract is never legally enforceable. Contracts that are not valid include those that require one or both parties to engage in illegal activities in order to fulfill their conditions. Previously valid contracts become void after the death of a party or is no longer able to fulfill the terms of the contract. A change in applicable laws or public order may also result in the nullity of a contract. .