Lesson: Illegitimate Contracts

In this lesson, familiarize yourself with what can render a contract illegitimate. Walk through key concepts such as the distinctions between void and voidable contracts, and dive into a wide range of scenarios that lead to unenforceability, such as fraud, duress, and undue influence. Nick Palazzolo, CPA, uses practical examples to illustrate how fraud can occur both in execution and inducement, and also how innocent misrepresentation works. Nick further explains the implications of contracts involving minors and how incapacity, intoxication, and the statute of limitations affect contract validity. Wrap things up with a look at various provisions like the statute of frauds and how they play a role in the legitimacy of a contract. This comprehensive overview is essential for recognizing pitfalls that could potentially undermine the enforceability of contracts.