Obligation and Contract

Chapter 8: Unenforceable Contract

Abstract
This paper discusses Chapter 8 of Obligation and Contracts and focuses on its definition including the kinds and elements
that make a contract unenforceable. This paper will also discuss the advantages and disadvantages of unenforceable
contracts.

Table of Contents
1. Introduction

2. Effects (Advantages & Disadvantages)

3. Conclusion

4. References

Introduction
An unenforceable contract is a valid contract that the court chooses, for specific reasons, not to enforce. An
unenforceable defense is commonly used in contradistinction to void or make the contract voidable. It is simpler
to start by determining what makes a contract enforceable in order to better understand what leads to a contract
being unenforceable. A legally binding agreement between two or more parties is referred to as an enforceable
contract. A contract must be legally enforceable and the defending party must be without any valid defenses
against breach of contract. Most contracts do not need to be in writing to be enforceable, but those that are
more difficult to establish in court.

A legally binding enforceable contract requires an offer to enter into an agreement, acceptance of that offer,
consideration, and no defenses for not enforcing the agreement. Some common defenses to enforcing a contract
are lack of capacity, duress, undue influence, misrepresentation, nondisclosure, unconscionability, public policy,
mistake, and impossibility. If these exist an otherwise valid contract may be unenforceable.

EFFECT:
The benefits of a contract being enforceable include the ability to take action if the contract is not fulfilled and
recover damages if the contract is not fulfilled. Additionally, if a party cannot take action against the other party,
the party may be less likely to negotiate in good faith, which could lead to a lack of agreement.
The disadvantages of a contract being unenforceable include the possibility that the party who is not able to take
action may be able to negotiate a better deal, as well as the potential for disputes to become more complicated
and time-consuming to resolve. Additionally, if a dispute does arise, the parties may not be able to reach a fair
resolution. There are pros and cons to having an unenforceable contract.
Obviously, the benefits include that no one can force you to fulfill your obligations under the contract, and no one
can sue you for damages if you don’t. The downside is that if either party violates the contract, the other party
may be able to take legal action to enforce the terms.
 In general, it’s often a good idea to have an unenforceable contract in place if you need to protect yourself from
someone who might be aggressive or dishonest. On the other hand, if you’re confident that both parties will
follow the terms of the contract, an unenforceable contract may not be necessary.

Conclusion

Reference

https://www.upcounsel.com/unenforceable-contract
https://www.contractscounsel.com/b/unenforceable-contract
https://civilstuff.com/what-are-the-pros-and-cons-of-an-unenforceable-contract