When a contract or agreement is deemed unenforceable, it means that the parties involved cannot legally force each other to uphold the terms of the agreement. This may happen for a variety of reasons, such as the agreement being invalid or against public policy.
In legal terms, an unenforceable agreement is not the same as an illegal agreement. An illegal agreement involves actions that are themselves against the law, such as agreeing to participate in a criminal activity. In contrast, an unenforceable agreement may not necessarily be illegal but lacks the necessary elements to create a binding contract.
Some examples of unenforceable agreements include:
1. Agreements that violate public policy: Any agreement that is against public policy cannot be enforced by the courts. For example, an agreement to commit fraud or interfere with another person`s legal rights is unenforceable.
2. Agreements without consideration: Consideration is what each party in a contract agrees to give or receive in return for the other`s promise. If there is no consideration, such as when someone promises to do something without receiving anything in return, then the agreement is not enforceable.
3. Agreements that lack capacity: A contract requires parties to have the legal capacity to enter into it. For example, a contract signed by a minor is generally not enforceable since they lack the capacity to enter into a binding agreement.
4. Agreements that are impossible to perform: If the subject matter of the contract becomes impossible to perform, then the agreement is not enforceable. For example, if someone agrees to deliver a product but the product is destroyed before it can be delivered, then the contract is unenforceable.
It`s important to note that unenforceable agreements may still have legal consequences. For example, if someone breaches an unenforceable agreement, they may still be sued for damages. Additionally, parties may choose to renegotiate the terms of an unenforceable agreement to create a new, enforceable contract.
In conclusion, an unenforceable agreement is one that cannot be legally enforced by the courts. There are several reasons why an agreement may be deemed unenforceable, such as violating public policy or lacking the necessary elements to create a binding contract. However, parties should still be aware of the legal consequences of breaching an unenforceable agreement and may choose to renegotiate the terms to create a new, enforceable contract.