Contracts provide certainty to a business. Whether they concern employment, procuring materials, or selling goods or services, an enforceable agreement allows you to optimize your operations.
However, business agreements can cause unnecessary delay or expense if a portion of the contract is unenforceable. Fortunately, our team of attorneys at Begum Peláez-Prada PLLC has experience identifying unenforceable aspects of a San Antonio business contract. If our review of an agreement reveals a clause or provision that a court would not uphold, we could help you revise it to accomplish your business purpose.
The common law of contracts establishes legal requirements a contract must meet to be valid. If a contract cannot be fulfilled in less than a year, it must be in writing. Our attorneys have extensive experience drafting written business contracts in both English and Spanish for various purposes.
Both parties must consent to the contract without duress. There must be an exchange of value in the agreement—the legal term for this exchange is consideration. The exchange need not be equal and could seem unfair, but if the contract terms specify that the consideration was fair, the contract is likely enforceable.
All parties must have the capacity to sign a contract. They must be over 18 and cannot be drunk, high, or suffering from mental incapacity when they sign. Our San Antonio attorneys could answer any further questions about aspects of a business contract that might make it unenforceable.
Some contracts are voidable, meaning they can be set aside in their entirety. One reason for voiding contracts is that their purpose is illegal or against public policy. Business agreements to fix prices, manipulate supply, suppress competition, or limit wages would all fall within this category.
A contract could also be voidable if an essential provision is against the law. For example, Texas Business and Commerce Code § 272.001 makes construction contracts that require enforcement under another state’s laws voidable. Our San Antonio attorneys could explain the legal nuances that can lead to an unenforceable business contract and flag any provisions that violate local law or public policy.
A contract also may be voidable if it is impossible to comply with its terms. If conditions subsequent to signing the agreement render it impossible to perform, a court may void it. If one party incurred expenses in anticipation of completing the contract that then became impossible, the harmed party may be entitled to compensation.
Business contracts, or clauses within them, can be set aside for being unconscionable, or shockingly unfair and one-sided. Contracts may favor one party over another, but if the contract is exploitative or does not provide a meaningful opportunity for both parties to benefit, a court could refuse to enforce it.
Courts will examine the circumstances that led to the contract to determine whether both parties had bargaining power and an opportunity to negotiate. The judge will also scrutinize the contract terms to determine whether one party bears disproportionate risk for little benefit.
Sasha Begum and her team of attorneys are prepared to flag any contract provisions that are grossly one-sided, whether they favor you or the other party. They could help ensure you understand the risks associated with every provision, including the possibility that your San Antonio business contract might not be enforceable.
The contracts your company makes are essential to your operations and eventual growth. The skilled attorneys at Begum Peláez-Prada PLLC could flag any unenforceable aspects of a San Antonio business contract and suggest alternative language or provisions.
If your company is located in Dreamhill Estates, Los Jardines, Olmos Park, Prospect Hill, Terrell Hills, or Tobin Hill, we are happy to serve you. Reach out to us about your business contracting needs today.
