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What are some common contract loopholes?

If you create a contract in North Carolina, you want it to be airtight. Any loopholes could come back to haunt you. According to USA Today, there are a few common loopholes a person may use to get out of a contract with you. In many cases, these loopholes are not in the actual writing of the contract but rather in the formation of the agreement between you and the other person.

A loophole that doe relate to the contract wording is when the contract is not specific or clear. If the other person does not know what he or she is agreeing to do or does not fully understand the agreement because the wording is not clear, he or she could legally break the contract or avoid your attempts enforce the contract.

A contract also becomes void when things are not done legally. If you attempt to defraud someone or trick them into signing a contract, or if you force someone into a contract, then it would be impossible to hold them to the agreement.

Another issue is when the person signing the contract does not have the ability to consent to it. Generally, this is based on age, but it could also apply to mental capacity. You have to be sure whoever signs the contract can legally do so.

Finally, another way someone may get out of a contract with you is if you breached the contract first, even if it was unintentional. Know what is in any contract you sign. Understand all terms and conditions. Make sure that you abide by all the requirements. If you mess up, you could inadvertently let the other person off the hook.

This information is for education. It is not legal advice.

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