Does A New Contract Void An Old One?

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Contractual law is a stringent part of the legal process. When someone enters a contract, they want to ensure that it does not become voidable, especially when money is involved. This is especially true with real estate contracts.

A new contract will not automatically void an old one. It will depend upon what the terms of the contracts are and the legality of the contract itself. But in general terms, a new contract will not automatically void an old one, nor will an old contract void a new one; the two are usually separate legally binding contracts.

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Why A New Contract Does Not Void An Old One

Generally speaking, a new contract does not automatically avoid an old contract. This is especially true with contracts that have to do with real estate.

Let’s say, for example, you are renting an apartment, and you have a contract for the apartment for five years; this contract is legally binding. You have agreed to the terms of the contract.

Let’s now say you want to rent another apartment in the same building with the same owner. The new contract will not automatically void your first contract. It will instead be an additional contract.

In this example, you can see that two contracts are considered valid. Adding a new contract does not automatically void the older contract unless, for some reason, it was explicitly written that the first contract would void the second contract.

What Makes A Contract Valid?

To understand this aspect of the law, we need to understand what makes a contract valid or what is considered a legally binding contract. Understanding this is especially important for real estate law.

Contracts Have Offer And Acceptance

Contracts have offers and acceptance. In other words, if you want to purchase a new house, you will make an offer on that house. The person selling the home will accept your offer and then take the home off the market.

If you sign a contract and give earnest money at the point of offer and acceptance, the contract has become valid.

In some jurisdictions, if an offer and acceptance are made verbally, that can be considered a legally binding contract. In other jurisdictions, it needs to be written down. When an offer is accepted, you must understand precisely what is considered valid for a contract.

Elements In Most Contracts

For a contract to be considered valid, most contracts should have three different elements. These three elements are:

What Makes A Contract Null And Void And Voidable?

There could be some circumstances where the way the contract is written or the terms of the contract cannot be fulfilled. When the contract is null and void, it is as if it never happened and was never valid.

The terms null, void, and voidable are not the same in the legal sense.

A null and void contract is considered one that could be dead on arrival because it was never considered valid. This means the contract was never legal and never a contract that should have been written as it was never valid.

Elements That Can Make A Contract Null And Void

They’re four specific elements that could make a contract null and void. If you are missing one or more of these elements, your contract could become null and void and not be considered valid.

Here are the four essential elements:

Elements That Can Make A Contract Voidable

A voidable contract is a contract that could have been deemed valid, but if both parties agree to avoid the contract, then the contract will no longer be valid and is voidable.

Some of the reasons a contract may be considered voidable could be:

Contractual law is very detailed and specific. If you have a contract that you feel may be null, void, or voidable, the best thing you can do is speak to a lawyer in your area where the contract was signed to get their legal advice.

Even specific parts of the United States could have different rules when it comes to contracts. That is why we always recommend that when you have an issue with a contract, especially a real estate contract, you talk to the proper legal authorities to help you navigate all the legal aspects of the contract.

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By clicking here, you can read more about Can You Legally Live In A Commercial Property?

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Anita Hummel
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