How to Legally Break a Contract
- 1). Withdraw from the contract within the 3-day right of rescission. Contract law is overseen by the state in which the contract was drawn, so exact requirements and stipulations are governed by your state. However, a common section in most contracts, particularly real estate agreements, is the "right of rescission." This enables a consumer to withdraw from a contract, without penalty, provided he exercises his right within 3 business days.
- 2). Recheck the age of the contract parties. You must be a legal adult, age 18, to enter into a contract. If you are not, the contract is voidable. Again, because states supervise contract law, you must ascertain the age of majority in your state. While you are considered an adult at age 18 in most states, there are exceptions: Alabama, Delaware, Mississippi and Nebraska have later ages. Other states include high school graduation requirements.
- 3). Substantiate a claim of duress. No party that enters into agreement under duress is obligated to adhere to its terms. You cannot be forced to sign a document against your will; this automatically voids the contract. And someone cannot hold a gun to your head. Force or the mere the threat of force or intimidation can nullify a contract.
- 4). Substantiate a claim of incapacitation. If at the time of the contract signing either of the parties were impaired by alcohol or drugs to such an extent that they were incapable of understanding the document they were signing, the contract can be invalidated.
- 5). Review the terms of the contract. If the party with which you enter into the contract fails to fulfill his obligation under the terms of the contract, you can deem the contract void and refuse to honor its existing terms. For example, if you enter into a contract whereby a seller agrees to perform by a specific date, and he fails to meet the deadline requirement, he is in breach of the contract, and you are not obligated to perform (pay) your end of the contract.
- 6). Determine that a fraud was perpetrated in the execution of the contract. If the contract was entered into based upon fraudulent representations, the document is not valid and thus can be legally voided. For example, if a seller knowingly represented something false about a piece of real estate and you can prove it, you would not be bound by the terms of the contract.
- 7). Decide mutually that you do not want to pursue the contract. The most benign means to end a contract is to have all parties agree to its termination. For whatever individual reasons, if the parties consent, the contract can be broken. If you are attempting to get out of a contract, the first step is truly communication. Explain why you want to get out of the contract, and ask the other party for permission to void it.