So You Want to Escape Your Contract?
Nov. 2, 2020
When you sign a contract, you agree to the terms within it. Depending upon how well you drafted your agreement, getting out of it could be difficult. If you fail to continue to meet the conditions it imposes, the other party could take you to court for a breach of contract. Does this mean you need to carry on, even if doing so runs your business into the ground? Not necessarily.
What Are the Grounds to Challenge a Contract?
If you fear the other party may take you to litigation if you breach the contract, you must prepare. Here are some things to consider:
Do you have a contract: Oral agreements are technically valid in Mississippi. A contract requires one party to offer something and the other side to accept it. If you merely discussed the possibility of something, it is not a contract.
Do you need to breach it? Check the wording carefully or have an attorney do it for you. You might find your recall of the contract is inaccurate. Maybe it allows you more room to maneuver than you think. There may be ways to make things work by bending rather than breaking the terms of the agreement.
Would a court enforce the contract? If you intend to sail close to the wind, it is crucial to know if the wind is with you or against you. A court may rule the contract is unenforceable. They could do so for several reasons. One reason is if they consider it unconscionable. That is to say that it would go against their conscience to enforce it. Usually, this is because the contract is grossly unfair to one side.
Your business contract needs to work for you. If it does not, you may be able to negotiate changes to it. While it is essential to keep one eye on the prospect of litigation, it is preferable to avoid it.