Contract law Essay Example

Contract law Essay Example Contract law Essay Contract law Essay CONTRACT is a valid contract which lacks legal sufficiency due, for example, to incorrect or incomplete following of a required or statutory procedure, and may not be enforceable by the courts. Four Classifications of Defective Contract : 1. Rescission Contract Declaration or clearly communicated intention by a party to a avoidable contract that it is exercising its right to terminate (rescind) the contract. It is an irrevocable step that frees the other party as well from its contractual obligations, as if the contract never existed. Rescission may be on mutual consent, by an act of law, or by either party for reasonable cause such as a material misrepresentation. 2. Avoidable Contract Unlike a void contract, is a valid contract. At most, one party to the contract is bound. The unbound party may repudiate the contract, at which time the contract is void. 3. Unenforceable Contract Valid contract that cannot be fully enforced due to some technical defect. It has some legal consequences which may not be enforced in an action for images or specific performance in the face of certain defenses including the statute of frauds. . Void Contract Void contract cannot be enforced by law. Void contracts are different from avoidable contracts, which are contracts that may be (but not necessarily will be) nullified. However, when a contract is being written and signed, there is no automatic mechanism available in every situation that can be utilized to detect the validity or enforceability of that contract. Practically, a contr act can be declared to be void by a court of law.