Null and Void Contract Examples: Everything You Need to Know

By looking through null and void contract examples, you will learn the rules for writing proper agreements and avoid mistakes that could result in the voidance of your contract and unnecessary waste of time and resources.

Void Contract

A void contract is a formal agreement that is illegal and cannot be enforced by law at any point of its existence. Often, it violates fairness or public policy. A contract can be considered void when it is impossible to enforce the way it was originally written. For example, any changes in laws or regulations after a contract was signed but before it was fulfilled can make the contract void.

Agreements become void when they are made with individuals that do not have complete comprehension of what the agreement entails, whether due to permanent mental disability or due to being under the influence at the time of document execution. A contract with a minor will be void, unless such an agreement is made with the consent of the parent or guardian, which makes the document enforceable.

A fulfilled contract could be deemed void because it requires no further actions―all the terms are satisfied and nothing is left to enforce. A contract to perform any illegal activities, such as supplying illegal drugs, is void. When one party breaches the agreement that is void, nothing can be recovered because the contract was never valid.

Voidable Contract

A voidable contract is actionable, but the circumstances of signing such an agreement raise many questions, like in cases of information misrepresentation, nondisclosure of important facts, or violation of a person's free will. A voidable contract is a legal contract and can be enforced if parties agree to proceed with it.

Examples of Void Contracts

• Contracts dealing with an illegal activity, such as gambling, prostitution, or committing a crime
• Contracts signed by an individual who is not mentally competent
• Contracts stating impossible terms
• Contracts that violate public policy
• Contracts that infringe on person's rights, such as the right to choose a person to marry or the right to work

How to Terminate an Agreement

Depending on your specific situation, you will have to prepare a different document to cancel the agreement legally.

• Termination by mutual agreement, a basic termination document, must be signed by both parties when they mutually agree to exit the contract. Such document also prevents parties from suing one another if one of them decides against cancellation in the future.
• Termination for convenience takes form of a notice of termination for any reason presented by one party to another. To write a valid notice, adhere to the agreement terms and provide the appropriate notice period for the termination to take effect.
• Termination for cause is usually exercised in cases of serious issues with large sections of contracts resulting from the other party's fault. To cancel such a contract, you must draft a notice of termination to another party. Seek legal advice on how to draft a valid notice for this type of termination.

Writing a Notice of Termination for Convenience or Cause

1. Title the notice "Notice to Terminate Contract."
2. Specify the parties and date of the contract.
3. Reference the appropriate paragraph that allows you to cancel the contract, state whether you are terminating for convenience or because the other party hasn't met their obligations.
4. Explicitly state that you are canceling the contract and indicate the end date of the contract.
5. Provide a signature and date the document.

Mutual Release Clauses for Termination by Mutual Agreement

Though a proper termination document successfully cancels the contract, neither party is free from any accrued liability or obligations. The other party can still start a legal action against you for any of your debts unless you both agree to specifically void such obligations.

To completely nullify the contract and to wipe out all previous and future obligations, make sure that your mutual termination agreement contains a release clause. An example of the wording for such a clause could be something like this: "Both parties in the contract release and forgive all mutual claims, agreements, actions, and liabilities that parties might have against one another."

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