Online Test Banks
Score higher
See Online Test Banks
eLearning
Learning anything is easy
Browse Online Courses
Mobile Apps
Learning on the go
Explore Mobile Apps
Dummies Store
Shop for books and more
Start Shopping

Recognizing Common Contract Defenses

A contract defense is any legal challenge to a contract’s enforceability. Following are common contract defenses:

  • Illegality: The agreement itself is illegal or violates public policy.

  • Unconscionability: The agreement is so one-sided that it shocks the conscience of the court.

  • Mental incapacity or incompetence: One of the parties had a mental illness or incapacity at the time of contract formation.

  • Party was a minor: A party was not of legal age (younger than 18 years).

  • Fraud: A party made an affirmative misrepresentation or failed to disclose something that he or she was required to disclose.

  • Duress: One party made an unlawful threat to the other, giving that person no reasonable alternative but to enter into the contract.

  • Undue influence: A dominant party used an inappropriate method of persuasion to convince a weaker or more vulnerable party to enter into a contract against his better judgment.

  • Mistake: The parties entered into the agreement with a belief that was not in accord with the facts, and the belief goes to a basic assumption of the contract and is material.

  • Add a Comment
  • Print
  • Share
blog comments powered by Disqus
Advertisement

Inside Dummies.com

Dummies.com Sweepstakes

Win $500. Easy.