Although breaching a contract can lead to complicated lawsuits, it is possible to void a contract within the legal realm. And while it might sound like a breach, the differences can affect all the involved parties differently.
And if you don’t know what you are doing, you could be creating a contract that cannot be legally enforced, leaving you with unresolved services and lost money.
First, learn the differences between breached and voided contracts. A breach of contract violates any of the agreed-upon terms and conditions of a binding agreement in a signed contract. They can range from anything like a late payment to a more severe violation, such as the failure to deliver a promised asset.
A breach can happen in both written and oral agreements and usually falls into these two categories:
Yes. On top of repaying any money that has already been exchanged, you could also find yourself paying in other ways:
These are awarded to the party that suffered damages because of the breach and compensate them for their loss.
These compensate a party for any damages that directly resulted from the breach. They can include other expenses plus the actual incurred costs, but consequential damages are only available if they are foreseeable.
These are given as punishment to prevent harmful behavior from happening again. While not unheard of, these are not common in Virginia contract cases.
This means that one party might have to sell or turn over specific items to cover damages. Usually, these are agreed to and listed in a particular clause in the contract.
These are awarded in addition to other damages when a specific value cannot be placed on the breach. They can also enforce that one party still completes their end of the contract.
A void contract is no longer valid or legally enforceable under state or federal laws. This could be because a change in policy means that certain products or services are no longer needed or because the contract was not correctly written and approved in the first place.
It could also be because one party made an unfair deal to the other party, so a court or arbitrator rules that it was never within the realm of reason, to begin with.
You might wonder if there are justified motives to get out of your contract. Read below to see some of the more common reasons people use to void a contract.
Whatever the agreed-up product or service is, the contract cannot go against public policies that are in place to protect others.
In business agreements, there needs to be equal compensation for all involved parties. One party cannot exponentially benefit while the other(s) suffer.
No part of the delivered product or service can come from illicit actions. This includes the raw materials, the source of labor, and so on.
People deemed not legal to make their own decisions cannot become a part of a contract. These can include minors, the mentally disabled, vulnerable elderly, and more.
You cannot base the exchange of goods and services on tasks that the other parties will not be able to complete.
The right-to-work (RTW) law allows workers to choose whether to join a labor union in the workplace. Your contract cannot impede that.
Are you in a contract that you feel was not correctly set up? Or do you think it was not made with everyone’s best interest in mind? Then contact Copenhaver, Ellett & Derrico.
Call us today at (540) 655-1854 or contact us online to see how we can help you.
