An agreement which is not enforceable by law by either of the parties is commonly referred to as an unenforceable contract. This type of contract lacks legal standing and cannot be enforced by the parties involved in the agreement.
Unenforceable contracts can arise for a variety of reasons, including a lack of legal capacity, illegal subject matter, or a failure to comply with the formalities required by law. In other cases, the contract may be deemed unenforceable due to the presence of a mistake, misrepresentation, or fraud.
One example of an unenforceable contract might be a contract where one party was under duress or pressure when entering into the agreement. In such a case, the contract may be considered to be voidable, meaning that one party has the right to cancel the contract because they were not acting freely or voluntarily.
Another example of an unenforceable contract might be a contract that does not comply with the statute of frauds. This legal requirement varies by jurisdiction but often requires certain types of contracts, such as those involving real estate, to be in writing and signed by all parties involved. Failure to comply with this requirement can render the contract unenforceable.
It`s important to note that an unenforceable contract is different from a void contract. A void contract is one that is not legally binding from the outset, such as a contract for an illegal purpose. In contrast, an unenforceable contract is valid and enforceable, but for some reason, cannot be enforced by one or both parties.
In conclusion, an agreement which is not enforceable by law by either of the parties is an unenforceable contract. Such contracts can arise due to a variety of reasons, including a lack of legal capacity, illegal subject matter, failure to comply with legal formalities and requirements, and the presence of mistakes, misrepresentations, or fraud. If you are entering into a contract, it`s important to ensure that it is legally enforceable to avoid any potential legal issues down the line.