Defensive Contract

Defective Contracts |

Kinds of defective contracts. | Definition |

(1) Rescissible contracts Rescission | It is a declaration or clearly communicated intention by a party to a voidable contract that it is exercising its right to terminate the contract. It is an irrevocable step that frees the other party as well and those validly agreed upon because all the essential elements exist and therefore legally effective, the remedy of this is granted in the interest of equity. It is a remedy granted by law to the contracting parties and sometimes even to third person s in order to secure preparation of damage caused them by a valid contract. |

(2) Voidable contracts | Which possess all the essential requisites of a valid contract but one of the parties is incapable of giving consent. Typical grounds for a contract being voidable include coercion, undue influence, misinterpretation or fraud. A contract made by a minor is often voidable, but a minor can only avoid a contract during his her minority status and for a reasonable time after he reaches the age of his her majority. After a reasonable period of time, the contract is deemed to be ratified and cannot be avoided. |

(3) Unenforceable contracts | It is cannot enforced or given effect in a court of law or sued upon by reason of certain defects provided by law until and unless they are ratified according to law. |

(4) Void or inexistent contracts | It is because of a certain defects, generally no defects at all. It is considered as inexistent from its inception or from the very beginning. The expression void contract is, therefore, a contradiction in terms. However, the expression is often loosely used to refer to an agreement tainted with illegality. |

Inexistent Contracts | Refer to agreements which lack one or some or all of the elements or do not comply with formalities which are essential for the existence of a contract. |