Excuses for Nonperformance: Conditions Preceding Contract Formation

Summary

This practice note covers the various reasons why a party's contractual obligations may be excused as a result of situations existing prior to contract formation, including: (i) mistake, (ii) fraud, (iii) illegality, (iv) duress and undue influence, and (v) lack of capacity. These excuses can serve to void an agreement or permit a court or the parties to cancel or amend an agreement to reflect the circumstances.