How to enforce a contract

A contract is a legal agreement between two or more parties. Each person in the contract has a responsibility to perform or refrain from an action. However, for contracts to work, there needs to be a way to make sure everyone follows the rules. This is where the legal system comes in: it helps resolve issues when someone breaks a contract or when a dispute arises.

How can I enforce a contract?

Enforcing a contract starts before anyone breaks the rules. Keeping track of contracts helps both people and businesses make sure they are doing what they promised. It also helps spot when someone isn’t holding up their end of the deal. If there’s a problem, you might be able to fix it by simply talking to the other person and finding a solution that works for both of you.

But if someone doesn’t follow a contract, there are ways to fix the problem:

1. Talk it out – Sometimes, simply reminding the other person about the contract can solve the issue.
2. Try Alternative Dispute Resolution (ADR) – This includes mediation, where a neutral person helps both sides negotiate, or arbitration, where an expert makes a final decision.
3. Take legal action (lawsuit) – If nothing else works, you can go to court. The court may make the person pay money for breaking the contract, order them to do what they promised, or even cancel the contract if it was unfair (rescission).

Be aware! There is a deadline (Statute of Limitations) to file a lawsuit. This depends on your state’s laws.

What is an enforceable contract?

A contract that can be enforced by law means that everyone involved is obligated to follow the rules they agreed to. If one person doesn’t do their part, the other person might be able to get money or other help to make things right. Here are some legal requirements needed to have an enforceable contract:

• Mutual agreement – Everyone involved must understand and clearly consent to creating an agreement that places contractual obligations on them. Minors or people with certain intellectual disabilities, for instance, might not be able to consent to a binding contract.
• Offer and acceptance – One person makes an offer, and the other accepts it. This may happen in writing or verbally. 
• Meeting of the minds – Everyone involved must be on the same page about the essential terms of the contract. If there’s anything to be altered or negotiated, it should be done before signing the contract.
• Consideration (something of value) – Both sides must give or get something valuable (like money, goods, or services). For example, if you agree to mow a neighbor’s lawn for $20, the money and the mowing are both considered “something of value.”

Understanding your enforcement options often means digging into the details of dispute resolution clauses, termination rights, or performance obligations. This can be tedious but you can use tools like Rocket Copilot Contract Review to break down these terms for you, so you know where you stand before escalating a dispute.

What makes a contract unenforceable?

Sometimes, contracts are not valid and cannot be enforced. This can happen in the following situations:

Fraud or misrepresentation	If one party purposefully lies or hides important information, a meeting of the minds becomes impossible, and the contract may not be valid.
Illegal purpose	If the contract involves something illegal (like selling stolen goods), it cannot be enforced.
Unfairness	If the contract is extremely unfair to one party due to pressure or a big difference in knowledge and power, a court may not enforce it.
Impossibility	If something happens that makes it impossible to fulfill the contract (like a house being destroyed by an earthquake before a sale is finalized), it may become void.

Does a contract have to be in writing?

Not always! In most cases, a contract doesn’t have to be written down to be legally binding. However, having a written contract makes it much easier to prove what was agreed upon and to enforce it.

If you need to enforce a verbal agreement, you must have proof that it happened and what its terms are. For example, if you have a business deal that wasn’t written down, you could use things like a history of working with the other person, emails or messages that discuss the agreement, or even actions that show both sides followed the agreement.

However, some contracts must be in writing to be valid. This includes:

• Contracts for selling real estate (like houses or land).
• Contracts that take more than a year to complete (such as a five-year lease).
• Contracts where someone agrees to take on another person’s debt.

Having a written contract is always a good idea since it helps prevent misunderstandings and makes it easier to enforce if something goes wrong.

If you have any more questions about how to enforce a contract, have Rocket Copilot Contract Review breakdown your contract into terms you can understand or reach out to a Legal Pro to learn about your legal rights and options.

 

Key takeaways There are different ways to enforce a contract. You can talk it out, use mediation or arbitration, or take legal action if needed.  Contracts must meet some legal requirements to be enforced. A valid contract needs mutual agreement, an offer and acceptance, clear terms, and something of value exchanged (like money or services). If a contract involves fraud, illegal activity, extreme unfairness, or becomes impossible to complete, it may not be valid. Not all contracts have to be in writing – but written contracts are easier to prove and enforce.