Contract Issues -Roth Law Group News - Cook County Small Business Attorney

Contract Issues Affecting Validity

Whether or not specifically stated in a contract or agreed to orally, contract law requires the parties to a contract to act in good faith. Therefore, parties who negotiate in bad faith risk having the contracts they enter set aside. Thus, if the seller of a 'mustang' knows a buyer believes he is purchasing a car, but intends to sell the buyer a horse, the seller may not enforce the contract when the buyer discovers the truth.

Another issue that may affect the enforceability of a contract is public policy. Contracts that violate public policy are not enforceable. Typically, this principle is used to invalidate contracts that are illegal (e.g., contracts for the sale of drugs or contracts to collect illegal gambling debts).

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Business Formation Articles:

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Taxation and Finance

Federal and State Licenses

Business Liability Insurance

Commercial Litigation

Contract Negotiation and Drafting

Contract Law Articles

Contract Law Introduction

Contract Offer and Acceptance

Contract Consideration

Contract Performance or Delivery

Contract Issues Affecting Validity

Contract Law Conclusion