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When might a contract cease to be an enforceable agreement?

On Behalf of | Jun 4, 2022 | Construction Disputes |

The field of construction is constantly growing, and you might take part in a multitude of projects across New York each year. Prior to initiating operations on each new construction project, you may feel it vital to take every possible measure to protect your company’s interests via thorough construction contracts. 

Construction contracts can be complex in nature and there may be numerous vital topics to cover in the terms of such agreements. With regards to construction contracts, it may also be helpful to know that there may be some scenarios in which a contract, or a portion thereof, may cease to be an enforceable agreement. 

Possible scenarios 

Knowing the scenarios in which a construction contract might cease to be enforceable might be helpful in various ways, and some examples of these scenarios may include the following: 

  • Contract breach:  Experts indicate that scenarios in which the other party breaches the terms of the contract might cause at least a portion of the agreement to cease to be enforceable. 
  • Illegal terms:  Contracts may also be unenforceable if it contains illegal terms, or if the parties who sign the contract do not retain the legal right or necessary licenses to do so. 
  • False representation:  Another issue that might impact the validity of a contract may involve scenarios in which one party misrepresents its intentions or capabilities. 
  • Presence of coercion:  The presence of coercion is another common issue, and contracts signed under similar scenarios might not prove enforceable. 
  • Legal capacity:  A contract may also cease to be enforceable should one of the parties who signed the agreement lack the capacity to carry out such actions. 

Issues that might affect the validity of construction contracts may also vary in each situation, and knowing how best to approach such issues can prove a daunting endeavor at times. 

Construction contracts 

Knowing how a construction contract might become unenforceable could help provide you with much needed insight on steps to take to create agreements that meet your needs. This could also help shed a light on ways to proceed if another party violates the terms of the agreement and causes your company to suffer loss.  

As contract terms and issues can be exceedingly complex, seeking guidance in addressing vital aspects of this side of construction law might prove integral to taking every possible measure to safeguard your company’s future.