What is an unenforceable contract?

An unenforceable contract refers to a situation where a contract exists but cannot be acted upon due to procedural reasons. This encompasses circumstances such as a failure to meet specific legal requirements, lack of necessary elements for enforceability, or legal regulations that prevent the enforcement of the agreement. For example, if a contract was made but lacks consideration or if it pertains to an illegal subject matter, it may be deemed unenforceable.

While a contract that is not legally binding suggests that it cannot be enforced from the start, an unenforceable contract may have been validly created but is blocked from being enforced due to other procedural issues. Similarly, a contract that has been mutually agreed to terminate is simply one that is no longer effective due to the parties’ consent, and a contract that has been fulfilled refers to an agreement that has been completed and therefore no longer needs enforcement. In contrast, an unenforceable contract remains in a legal gray area where the intent exists, but the ability to enforce it is hampered by procedural aspects.