Unenforceable Contractual Term
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A Unenforceable Contractual Term is a contractual clause that cannot be legally enforced because it fails to meet certain legal standards or requirements.
- Context:
- It can (typically) be identified within Contractual Agreements where specific clauses do not adhere to the legal framework or are considered unreasonable or unjust.
- It can (often) arise when Contractual Terms violate statutory provisions such as the Statute of Frauds, which requires certain contracts to be in writing and signed.
- It can range from terms that are Vague and Ambiguous to those that impose excessive restrictions like Overly Broad Non-Compete Clauses.
- It can be deemed unenforceable by courts if it heavily biases one party over another, violating the principle of Fair Contracting.
- It can also include clauses that contravene public policy or those that involve illegal activities.
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- Example(s):
- an Overly Broad Non-Compete Clause that unreasonably restricts an employee's ability to find subsequent employment, typically deemed unenforceable by courts to protect the individual's right to work.
- a clause failing due to the Statute of Frauds because it was not put into writing or signed as required by law, thus rendering the agreement void in specific contexts like real estate transactions or contracts lasting more than a year.
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- Counter-Example(s):
- Enforceable Contractual Terms, which meet all legal requirements and are considered valid and binding by a court.
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- See: Statute of Frauds, Vague and Ambiguous, Fair Contracting, Contractual Agreement.