What Happens When An Unenforceable Term Is Found In A Contract?

If a term in a contract is unenforceable, it means that the term is invalid.

Contracts are legally binding agreements between two parties, and they must be executed with consent. Contracts can be oral or written, and they are enforceable as long as they meet certain standards and requirements. This means that the agreement has to have been entered into freely and voluntarily by both parties who agree to all of its terms.

The terms in a contract have to be clearly defined so there is no confusion about what each party’s responsibilities are. The terms also have to be valid, which means the parties can’t include illegal or unconscionable terms in the contract. If the terms are not valid, then the contract is invalid and unenforceable.

On the other hand, others believe that If a term of a contract is unenforceable, it may still be valid. While unenforceable means that the court will not enforce that term, it does not necessarily mean that the term is also invalid.

For example, a court will not enforce a non-compete clause in an employment agreement if the employer does not provide compensation for the employee during their non-compete period. However, the clause remains valid, so if the employee violates the agreement by working for another company in the same industry during their non-compete period, then they can be sued for breach of contract.