Dissertation on Contracts under California Law
One of the first factors to consider before entering into a business arrangement is whether the commitment or agreement in question would be considered an enforceable contract under the law. Although most contracts contain promises to do anything (or not do something), not all promises are contracts. What criteria does the California law use to decide which contracts are enforceable and which are not?
Description of a Contract under California Law
When deciding if a company or employment arrangement should be followed, courts consider a variety of factors. To begin, the court must decide whether or not the arrangement is a contract. To be considered a legal contract, an agreement must meet the following requirements:
- One party must make a bid, which must be accepted by the other.
- A bargained-for exchange of promises is necessary, which means that something of value must be offered in exchange for a promise.
- A contract’s terms must be reasonably precise for a court to enforce them.
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Contract Compliance under California Law
If a court finds that a contract exists, it must then consider if it can be implemented. A court can refuse to enforce a contract for a variety of reasons. These are known as contract defences. Contract defences are meant to shield people from unfairness during the negotiating process or in the contract’s material. If a contract has a valid protection, it may be voidable, which means that the person who was the object of the unfairness may be able to cancel or terminate the contract.
In certain cases, the unfairness is so severe that the contract is declared void, i.e., the court declares that no contract was ever made. What are some of the possible reasons for a court’s refusal to enforce a contract?
Contract Defences: California’s Contracting Ability
An individual must have the legal right to form a contract in order to be bound by it. In California, this legal skill is known as capacity to contract. An individual who is unable to understand what he or she is doing when signing a contract due to age or mental illness can lack contracting capability.
An individual under legal guardianship because of a mental disorder, for example, has no ability to contract. Any contract signed by that person is null and void. In other circumstances, a person’s ability to contract may not be entirely lost. The contract will then be voidable at the request of the party alleging incapacity, if the incapacity could be proven.
Enforcement of Contract under California Law
To decide if you, the contract writer, are capable of creating an enforceable contract, the court will weigh a variety of factors. A minor, for example, cannot normally form an enforceable contract. A minor’s contract may be terminated by either the minor or his or her guardian. An individual has a fair time after reaching the age of majority (18 in most states) to cancel a contract entered into as a minor. If he or she does not void the contract within a reasonable time, it will be deemed ratified, rendering it binding and enforceable.
Can a contract be enforced if it is formed (or signed) when an individual is inebriated or under the influence of drugs? People who say they signed a contract while inebriated normally don’t get much sympathy from the courts. A court would usually cause a contract to be voided only if the other party to the contract was aware of the intoxication and took advantage of the intoxicated person, or if the person was involuntarily intoxicated (e.g. someone spiked the punch).
Defences of Contract under California Law: Coercion; Duress, Undue Influence, Misrepresentation
Coercion, intimidation, false claims, or inappropriate persuasion by one of the contracting parties will result in the contract being voided. These circumstances are resolved by the defences of duress, misrepresentation, and excessive influence:
A party must prove that assent or consent to the contract was caused by a severe threat of unlawful or unjust action in order to invoke the protection of signing under duress. He or she must also explain that they have no other choice but to sign the contract. Duress is exemplified by blackmail.
Conclusion
If you signed or formed a contract in California that was broken, whether implicit, oral, or written, contact a breach of contract attorney at a law firm today to arrange a consultation. They can help you understand what aspects of the contract are enforceable, how to assert a breach of contract, and when you can sue for breach of contract damages.
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References
- Contract law and damages in California
- California
- california law of contracts
- contract lawyer san diego
- what are the available damages in a california breach of contract
- Employment contracts
- Scholarship Law
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