Key Takeaways:

  • A contract can be voided if it lacks essential elements such as mutual consent, legal consideration, or lawful purpose.
  • Voidable contracts differ from void contracts—only one party may cancel a voidable contract, while void contracts are unenforceable from the outset.
  • Legal justifications for voiding a contract include fraud, misrepresentation, undue influence, impossibility of performance, or a termination clause.
  • Certain contracts can be canceled under consumer protection laws, such as the FTC’s "cooling-off" rule.
  • Contract disputes can often be resolved amicably without litigation by negotiating with the other party.
  • Consulting an attorney is advised for reviewing and voiding contracts lawfully.

If trying to discover how to void a contract legally, that means you currently have signed a contract that you no longer want to continue abiding by. Contracts are serious agreements that can lead to costly consequences if not followed. Still, you can lawfully void a contract under exceptional circumstances. A contract must have certain elements to make it valid. If those elements are not present, then the contract is void, even if both parties signed it.

Basic Elements of Valid Contract

A contract is enforceable by law if it has these required elements:

  1. Offer and acceptance. You must have an offer from one party and acceptance from the other party. This is usually done in writing, such as a work contract.
  2. Legal object and capacity of parties. The offer must be legal and the parties:
    • Must both enter into the contract willingly.
    • Must be legal age to enter a contract.
    • Must have the mental capacity to carry out the agreement.
  3. Consideration. The contract must be mutually beneficial. For instance, you can have a contract with a photographer. You provide the compensation, and the photographer offers a professional headshot. Someone giving you 25% interest in a company for your marketing abilities is also mutually beneficial.
  4. Written and verbal. Not all oral agreements are enforceable. Contracts with significant consideration usually require written agreements. Real property purchases, car financing, and wills are a few examples of arrangements with large amounts of consideration.

A contract is much more than an agreement between two people. You must ensure your contract has all the elements necessary for a legally binding agreement.

Legal Reasons a Contract May Be Voided

There are several legal reasons a contract may be considered void or voidable, including:

  1. Fraud or Misrepresentation – If one party deliberately deceives the other by providing false information or omitting key facts, the contract may be voidable.
  2. Mistake – A mutual mistake concerning a fundamental fact in the contract may make it unenforceable.
  3. Lack of Capacity – If one party was mentally incapacitated, underage, or otherwise unable to understand the contract at the time of signing, the agreement can be voided.
  4. Undue Influence or Duress – A contract signed under coercion, pressure, or unfair persuasion may be invalid.
  5. Illegality or Violation of Public Policy – If the contract involves illegal activities or violates public policy, it is automatically void.
  6. Failure to Meet Contractual Formalities – Certain contracts must be in writing and signed to be enforceable, such as real estate agreements.
  7. Impossibility of Performance – If unforeseen circumstances make it impossible for one or both parties to fulfill their obligations, the contract may be terminated.

How to End a Contract

  • An unconscionable agreement is one that is one-sided. You have legal grounds to terminate a contract that mainly benefits one party in the deal.
  • When the other party shows signs of giving up on the contract (anticipatory breach), then you are no longer legally bound by the agreement.
  • A material breach is one that violates the contract's core. If one party does not or cannot deliver on the main reasons for the contract, it voids the contract.
  • If a contract is fraudulent, it is not enforceable, and therefore you have grounds to terminate the contract.
  • Some contracts have a termination clause. A termination clause usually states ways parties can terminate the contract early.
  • There are situations where you or the other party cannot perform the duties outlined in the contract (impossibility of performance) due to a condition beyond either party's control. If this is the circumstance, then the contract can no longer move forward.
  • If you can prove that you were forced to sign a contract under duress, then the contract is not enforceable. Keep in mind that you would need to show that the other party heavily influenced your contractual agreement.
  • The FTC has a "cooling-off" rule wherein customers of door-to-door sales of $25 or more have 72 hours to change their mind. Before the sale, sellers must review the return policy with customers and provide them with the cancellation forms.

If you need to terminate your contract prematurely, you do not have to end up in court to do so. Present your reasons to the other party and work together to come to an amicable solution.

Check to make sure you follow consumer protection laws. It is also smart to have an attorney look over any agreement.

Steps to Void a Contract After Signing It

If you are wondering, "Can you void a contract after signing it?" the answer depends on the circumstances. Here’s how to proceed:

  1. Review the Contract Terms – Look for clauses that outline conditions under which the contract can be terminated, such as an early termination or contingency clause.
  2. Identify Legal Grounds for Voiding – Determine if fraud, misrepresentation, or another legal justification applies to your situation.
  3. Attempt to Negotiate with the Other Party – Many contracts can be voided or modified if both parties agree.
  4. Provide Written Notice – If a contract has an exit clause, send a written notice of termination within the required timeframe.
  5. Seek Legal Advice – An attorney can guide you on the legal implications and proper steps for voiding a contract.
  6. Follow Legal Procedures – If the other party disputes the termination, you may need to pursue mediation, arbitration, or legal action.

Difference Between “Void” and “Voidable” Contracts

There is a difference between a void contract and a voidable contract. Void contracts are not enforceable from the beginning because it does not have all the elements required for a valid contract. A contract is void for any of the following reasons:

  • The contract included unlawful consideration or object.
  • One of the parties was not in their right mind at the time the agreement was signed.
  • One of the parties was underage.
  • The terms are impossible to meet.
  • The agreement restricts a party's right.

On the other hand, only one party is legally bound to the contract while the other party can choose whether he or she wants to go through with the agreement in a voidable contract.

Make sure you understand the elements what makes a contract valid, void, or voidable before entering into an agreement. Disputing a contract after the fact can be pretty costly.

Common Mistakes When Attempting to Void a Contract

Avoiding common pitfalls can help ensure a contract is legally voided without unintended consequences:

  • Failing to Review the Contract Thoroughly – Overlooking termination clauses can lead to legal complications.
  • Assuming a Breach Automatically Voids the Contract – Some breaches allow the non-breaching party to seek damages rather than voiding the contract.
  • Not Following Proper Legal Procedures – A contract may require specific steps, such as written notice or mediation, before termination.
  • Attempting to Void Without Legal Grounds – Courts may enforce contracts if they were signed willingly and meet all legal requirements.
  • Ignoring Statutory Deadlines – Some contracts, like those covered under the FTC’s cooling-off rule, have strict time limits for cancellation.

Frequently Asked Questions 

  1. Can you void a contract after signing it if you change your mind?
    • In most cases, no. However, some consumer contracts include cancellation periods under laws like the FTC’s cooling-off rule.
  2. What happens if one party wants to void a contract but the other doesn’t?
    • If the contract is legally binding, the party seeking termination must have legal grounds, such as fraud or breach of contract. Otherwise, they may face penalties.
  3. Does signing a contract under pressure make it void?
    • If a party was coerced into signing under duress, undue influence, or threats, the contract may be voidable.
  4. What contracts can be voided under the FTC’s cooling-off rule?
    • Certain sales contracts made away from the seller’s usual place of business (like door-to-door sales) can be canceled within 72 hours.
  5. How can an attorney help with voiding a contract?
    • A lawyer can review your contract, identify legal grounds for termination, and guide you through the proper legal process to avoid liability.

If you need help with reviewing a contract, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.