Can you lawfully rescind a business contract?

Sometimes parties get into a contract, only to find out at some point that things aren’t working out the way they expected. There are some circumstances in which you may be able to terminate and rescind the contractual agreement. 

Whether you’re able to terminate the contract depends on a variety of factors. Do you meet the requirements to do so? 

Reasons that you can terminate a contract

You may want to start by reviewing your contract’s terms and conditions to see whether you have a legal justification for terminating the contract. One of the most common, valid reasons parties may seek termination of their contract is if there’s been some kind of breach. One party may seek specific performance or financial compensation if this occurs. 

There are other situations that may nullify a contract. You may petition a judge to do so if you can prove that the contracted party didn’t have the mental capacity to understand the legal consequences of entering into such an agreement. Any proof that you can show that a person signed the contract under duress, such as someone threatening them with physical harm, may also serve as valid grounds for voiding a contract. Someone may also petition the court to throw out a contract if they were defrauded into signing it or if it contained an error in facts or misrepresentations as well. 

Can you seek to invalidate your contract?

Conflicts over business contracts happen every day. You might have a right to contest a contract’s validity if you entered into an agreement under false pretenses or there are other problems, which can help you recoup your losses.

Our website can provide a wealth of information about business litigation matters such as this. You may want to continue reviewing the materials here to learn what your rights are in your case.