What can void a contract?

Asked by: Millie Schmidt | Last update: February 5, 2026

Score: 4.3/5 (54 votes)

A contract can be voided due to fundamental issues like illegality, lack of capacity (minors, mental incompetence), fraud or misrepresentation, duress or undue influence, mutual mistake, unconscionable terms, or impossibility of performance, while significant breaches can make a contract voidable, allowing the wronged party to terminate it. A truly "void" contract was never valid, whereas a "voidable" contract is initially valid but can be legally canceled by one party.

What are three things that can cause a contract to be void?

Three major reasons a contract becomes void are illegal purpose (involving unlawful acts like drug deals), lack of legal capacity (one party is a minor or mentally incapacitated), and impossibility of performance (an unforeseen event makes it impossible to fulfill). Other common causes include mutual mistakes or fraud, rendering the agreement unenforceable from the start.

What makes a contract legally void?

A contract that is void is not legally enforceable and the parties thereto are not legally obligated to each other. Generally, contracts are void because the subject matter is not legal or one of the contracting parties does not have the competency to contract.

What could make a contract void?

A contract entered into under duress (threats or coercion) or undue influence (abuse of a position of trust) is not valid. Both situations remove the element of free will. Example: If someone signs a contract because they are being threatened with physical harm, the contract is likely invalid.

What makes something legally void?

The term "void" refers to something that is legally ineffective or without force. This can apply to statutes, contracts, or court rulings that are deemed invalid. For instance, a law declared unconstitutional by an appeals court is considered void.

Void vs Voidable Contracts: What's the Difference in Real Estate?

43 related questions found

How to make a contract invalid?

What Makes a Contract Invalid?

Illegal subject matter.
Contracts formed under duress.
Substantive unconscionability.
Procedural unconscionability.
Lack of capacity to enter a contract.
Contract of adhesion.
Statute of Fraud requirement.
Better contracting with CLM software.

How to nullify a contract?

Five ways to void a contract/make a contract ineffective

Prove its invalidity. Contracts are only effective if they're legally valid. ...
Use capacity to end it. ...
Agree to mutually void it. ...
Exercise the “cooling off” rule. ...
Use the terms of a voidable contract.

What automatically voids a contract?

Contracts become null and void if one party is coerced into signing through threats or manipulation. Duress involves physical or mental threats, while undue influence occurs when someone manipulates or pressures another party into an agreement against their will.

What are four types of mistakes that can invalidate a contract?

Four types of mistakes that can invalidate a contract, making it void or voidable, include Mutual Mistake (both parties share the same fundamental error), Unilateral Mistake (one party is mistaken, and the other knows or should know), Common Mistake (a shared error about the existence or quality of the subject matter, often rendering the contract void), and mistakes involving Misrepresentation or Fraud, where one party is misled by false statements about essential facts, though technically not just a "mistake" but a vitiating factor often grouped with them.

What are the 4 breaches of contract?

The four main types of breach of contract are Material Breach (a major violation), Minor Breach (a trivial failure), Anticipatory Breach (a warning sign of future non-performance), and Actual Breach (a failure to perform when due), with some systems also identifying a more severe Fundamental Breach, but these four provide the core framework for understanding contract violations and their consequences.

How can a contract be terminated?

One of the most common reasons for contract termination is when one of the parties to the contract has breached the contract. This happens when a party has failed to fulfill their obligations or has acted in a way that was inconsistent with the rules set out by the contract or agreement.

What are the ways a contract can be invalid?

A contract may be considered invalid if it: Involves illegal activities or violates public policy. Was signed under coercion, fraud, or misrepresentation. Lacks mutual agreement or a clear exchange of value.

What are common examples of void contracts?

Real-world examples

Here are a couple of examples of void contracts: A contract for the sale of illegal drugs is void because the subject matter is illegal. A contract made by a person who is declared mentally incompetent is void due to lack of capacity (hypothetical example).

What makes a contract not legally binding?

An Unenforceable Contract Might Have Been Signed Under Duress. The parties to a contract should be signing it voluntarily. However, one party might force another person to sign a contract. The act of forcing someone to do something they ordinarily would not do is duress.

What are the 4 conditions of a contract?

It is a legal framework for the agreement between the parties, which is both certain and enforceable. However, to be legally binding, a contract must include four key elements: an offer, acceptance, consideration, and an intention to create legal relations.

How to prove a contract is void?

How do I legally nullify or void a signed contract? You can challenge a contract's validity by proving it never met legal requirements or requesting rescission due to material issues, such as misrepresentation, unequal bargaining power, or fundamental mistake.

What are the grounds for invalidating a contract?

The reason that this may occur is the presence of any one of the following factors that would make the contract invalid: incapacity to contract, illegality, contrary to public policy, mistake, misrepresentation, duress, undue influence, and unconscionability.

What is Section 22 of the contract Act?

22Contract caused by mistake of one party as to matter of fact. A contract is not voidable merely because it was caused by one of the parties to it being under a mistake as to a matter of fact.

What mistake is likely to be voidable?

A voidable contract is legally valid but can be canceled by one party due to specific legal defects. Common reasons include misrepresentation, fraud, duress, undue influence, mental incompetence, or mutual mistake.

How to get out of a contract legally?

How can I get out of a contract?

Negotiate a Change or Cancellation. ...
Express Right to Terminate. ...
Cooling-off or Cancellation Periods. ...
Inability to Perform. ...
Mutual Mistake. ...
Breaching a Contract. ...
Voiding Factors. ...
Contact Cornerstone Law Firm for help.

How do you nullify a contract?

If both parties want out of the agreement, that may be achieved by signing a Mutual Rescission and Release Agreement. The Mutual Rescission and Release Agreement serves to render the original contract null and void and places the parties back to their original positions before they entered into that first agreement.

What are the grounds for voiding a contract?

However, the grounds for contract voiding — fraud, mistake, illegality, coercion, and incapacity — underscore that validity consistently hinges on fairness, legality, and transparency.

What are the six ways a contract can be terminated?

The 6 Different Ways to Discharge a Contract

Example of Discharge by Performance:
Example of Discharge by Agreement or Consent:
Example of Discharge by Impossibility of Performance:
Example of Discharge by Lapse of Time:
Example of Discharge by Operational Law:
Example of Discharge by Breach of a Contract:

How do I legally cancel a contract?

To cancel a contract, take the following steps:

Make sure you send the cancellation notice within the time allowed.
Always cancel in writing. You can use the cancellation form or send a letter.
Keep a copy of your cancellation notice or letter.
Send your cancellation notice by certified mail, return receipt.

What are the 4 bars to rescission?

Common bars to rescission include affirmation (confirming the contract), impossibility of restoring both sides to their previous positions, the involvement of innocent third-party rights, and undue delay.