Can You Legally Break a Contract?
Once a business contract is written and signed in ink, it is legally binding and cannot be broken – or is it? In Florida, there may be certain moments in the life of a business when you may be able to break a contract. Whether or not you can break a certain contract will depend on several factors. You need to be careful if you plan to break a contract, as the other party may attempt to sue for breach of contract. At the office of Edward J. Jennings, P.A., our Fort Lauderdale breach of contract attorneys are familiar with contract law and can advise you if and how you can break a contract in Florida.
When Can You Break a Contract?
A contract is considered valid and binding if both parties agree to the terms and exchange something of value. However, there are certain circumstances under which you may break the contract without technically breaching it. Some common situations you may encounter include the following:
- One or both parties committed a material breach;
- One or both parties misunderstood the terms of the agreement; or
- One or both parties have the right of rescission.
A material breach occurs when the other party breaks the contract first. If the other party is unable to uphold his, her, or its end of the agreement, you have no obligation to uphold your own end. This is true in cases when the other party gives you advance notice of his, her, or its inability to uphold the contract.
If you do not completely understand the terms of a contract at the time of signing, you may have grounds to break it. If one party misunderstands the terms, the two parties cannot be said to be in agreement. The other party may disagree with your claim, leading to a lawsuit. You should be careful if you claim misunderstand and retain the help of a Fort Lauderdale contract attorney if you plan to break a contract on these grounds.
If someone signs the contract without the mental capacity to do so, the contract may be voided. This happens when someone is too young or mentally limited to understand the conditions outlined in the contract.
Some contracts have written into them an escape route. If you choose to use the escape route, you must do so within three days of signing the agreement. Though you can do this with no consequences if the contract allows, you should still seek legal assistance if you opt to go this route.
Follow Necessary Procedures
If you think you have grounds to break a contract, you need to make sure you follow all necessary procedures. Look over the contract and make sure you are correct in your assumptions. Better yet, have a Fort Lauderdale business breach of contract lawyer take a look with you. You can work with the lawyer to determine whether or not you can legally breach the contract. A lawyer can also be helpful if the other party intends to sue you for breach of contract.
Call a Fort Lauderdale Business Lawyer
If you intend to break a contract, you need to lawyer-up. The other party can turn around and sue you, and your grounds for breaking the contract may be difficult to prove. The lawyers at the office of Edward J. Jennings, PA have the experience to help you through this. Stay protected from unwanted lawsuits and call us today to discuss more about your contract agreements.