There are several contractual arrangements that exist in a multitude of real-life situations.

While contracts are legally binding agreements, that is, the parties are held to their terms until the contract either expires, or no longer applies, there are ways to void that contract prior to the agreed upon end.

Assuming the contract is legally formed correctly, (that is, between two legal adults, with an agreed consideration or price and the end result of the performance of the contract) then it is what is called “voidable”. This means that there is a possibility to make it void under certain circumstances.

• A contract can become void as a result of duress – Duress indicates influence and restrictions meant to coerce a person into agreeing with something. So, if it is found that a party, though they seemed to have entered into the contract willingly, by signing the contract, there could be a possibility that they did so under duress- so they were threatened or cajoled into signing it by either the other party, or a third party who stands to benefit from the contract as well. The law does not allow for those contracts to stand, as contracts are to be between parties who are fully aware of the circumstances and consequences and entered the arrangement at their own true and free will.

• Mutual agreement to void a contract – In this circumstance, the parties agree that the contract is no longer necessary or the circumstances have materially changed in a way that alters the need for the contract in its current terms, then they can all agree to void the current agreed terms. In this case, the parties dissolve the contract and can either revise the terms, or part ways altogether.

• Breach of contract – Most contracts actually have terms that speak to the process to be followed should something materially change. In case that one of the parties deviates in a material way that makes the performance of the contract in the agreed terms impossible or unlikely, then the other party usually rescinds or voids the contract in that case. In the case that the breach cannot be remedied to the satisfaction of the other party, then the contract comes to an end altogether. In some cases, a breach could be fixed and there are probably amended terms to fix the breach and have the rest of the contract performed as previously agreed. However, in the event that the contract cannot be fixed, then the breach will result in a voiding of the contractual terms.

It is important that contracts are clearly entered into and have clear outlines for how the parties can exit should circumstances change. In the event the contract is to be voided, the contract should also have the rescinding procedure, so the parties know the steps to follow to leave the arrangement.