4 Defenses to Void or Invalidate a Contract
How the law can help you get out of a contract in Minnesota
By Benjy Schirm, J.D. | Reviewed by Canaan Suitt, J.D. | Last updated on January 3, 2024Use these links to jump to different sections:
- 1. Legal Incapacity
- 2. Illegal Contract
- 3. Mistake
- 4. Misrepresentation and Fraud
- Find an Experienced Attorney
Whether you realize it or not, we form and create contracts every single day. To form a contract, all you need is two parties:
- A contracting party to make an offer;
- Another party to accept the offer and give some consideration—generally a payment of some sort.
Are these agreements ever unenforceable? Generally, the terms of a contract are legally binding such that parties who fail to perform are in breach of contract. However, there are a number of ways that a contract can be invalidated or rescinded. If you want to get out of a contract, the best bet is one of the following four affirmative defenses.
1. Legal Incapacity
In the state of Minnesota, a minor (someone under 18, the age of majority) is able to void any contract unless it is for necessities.
Necessities include items and services that are necessary to the minor’s health and safety, such as food, lodging, shelter, and clothing. In some instances, automobiles are also considered necessities. So, if a minor enters into an enforceable contract for something that is not a necessary item, they can usually get out of it.
2. Illegal Contract
As a matter of public policy, Minnesota law deems contracts for illegal goods or services as invalid. For example, any contract for the exchange of illegal drugs, harming others, or breaking any law is not enforceable.
The illegality must relate directly to the subject matter creation of the contract and not some intervening circumstance. So, if you expect the law to protect your rights in a contract, be certain that the subject matter doesn’t break the law.
3. Mistake
Immediacy has become one of the central pillars of commerce in the United States. Contracts are formed quickly, and purchases can be made online between a human and a computer program for goods in a matter of seconds. This inevitably means that there will be mistakes in understanding all the terms of the contract.
If there is a significant mistake in the understanding of the material parts of the contract, it could be voided. But, if there is an easy fix or concession that one party can make, or if one party isn’t significantly hurt or damaged by the contract being fulfilled, then it will most likely stand up to challenge.
4. Misrepresentation and Fraud
Similar to the mistake defense, if one party to a contract has lied or intentionally led the other to believe that they were contracting for something other than they have represented, the contract can be voided.
This defense is most often used in investing scams where an agent sells fraudulent investment opportunities to unwitting buyers. If you have the misfortune to have entered into a fraudulent contract, the courts will protect you. Be aware, however, that fraudsters are often sophisticated and difficult to track down once they have your money.
So, this defense shouldn’t be relied upon to enter into risky contracts with suspect sellers offering results that are too good to be true.
Find an Experienced Attorney
If you have entered into a contract that is less than you had hoped, don’t despair. Visit the Super Lawyers directory to find a reputable and experienced attorney for legal advice on the options you may have to render the contract voidable and avoid a breach of contract claim. If you’d like more general information about this area of the law, see our contract law overview.
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