Q:

What makes a contract null and void?

A:

Quick Answer

A contract is null and void when it can no longer be legally enforced. If one party to the contract gives an indication that it is unable to hold up its end, the other party may claim an anticipatory breach of contract. If the agreement is unconscionable or grossly unfair to one party, or one party commits fraud, the contract may be void.

  Know More

Full Answer

An agreement may also be void if one party is incompetent or a minor and unable to enter a legal agreement, a bilateral mistake is made, it involves restraint of legal proceedings, it is an agreement with uncertain terms, it is a wager or it involves impossible acts. For example, if one's house burns down before a contractor is able to repair the roof, the contract is voided, as the terms have become impossible to fulfill. There may be a time frame in which a contract may be voided, though there is no universal grace period. For example, mortgage refinance transactions carry a three-day right of rescission. If one party lies to the other about key issues in the contract, the other party may not only void the contract but sue for anything paid or lost in addition to punitive damages.

Learn more about Law

Try a quiz

Q:
How many hearts does an octopus have?

Related Questions

  • Q:

    What is counteroffer in contract law?

    A:

    According to Law.com, the party who proposes a counteroffer seeks to revise the terms of a proposed contract without halting negotiations. Legally, a counteroffer is a rejection of the contract. When a counteroffer is given, several outcomes are possible. The options are for all parties to agree to the revised terms, for one side to submit another counteroffer, or for one side to reject the offer completely.

    Full Answer >
    Filed Under:
  • Q:

    What is an example of a service contract?

    A:

    A service contract is an agreement between a service provider and a buyer that defines the services the provider handles over a specified period. For example, a three-year service plan can be purchased to cover any repairs or maintenance needed during that period.

    Full Answer >
    Filed Under:
  • Q:

    Can my employer change my contract?

    A:

    Typically an employer cannot unilaterally alter the terms of an employment contract, according to the American Bar Association. Under basic contract law, all parties must have a meeting of the minds in order to amend a contract.

    Full Answer >
    Filed Under:
  • Q:

    What is the postal rule in contract law?

    A:

    The postal rule is an exception to the general rule that contract acceptance must be communicated directly to the offeror and acceptance is only effective when the offeror receives that acceptance. The acceptance is actually effective as soon as the offeree mails the acceptance, according to Cornell University Law School.

    Full Answer >
    Filed Under:

Explore