Courts enforce contracts. If someone refuses to perform on a oral or written contract they have with you, you have the right to compel their performance as set forth in the contract. Ultimately, the terms of the contract will control. Where the contract is unclear or disputed, a well-developed body of contract law helps determine the outcome. Because contracts come in so many different forms, we encourage you to click here for an evaluation of your case, or if you have any questions.

Generally, an action to enforce a written contract must be filed within six years of the breach, and an action to enforce an oral contract must be filed within four years of the breach.

Contracts come in all varieties, and are usually enforceable to the extent that all parties to the contract had a clear understanding of its meaning, had sufficient bargaining power, each gave up something of value, and the terms of contract are not illegal or contrary to public policy.

If a written contract is clear and unambiguous, it will likely be enforced according to its written terms. If the language of a contract is ambiguous, and both parties have a reasonable basis for their different interpretations, then courts may look to outside the contract to determine how it should be interpreted. Often, contracts will be interpreted against the person who drafted its language.

The law may not enforce certain types of contracts, including:

• Contracts without "consideration." For a contract to be valid, each party to the contract must give up something of value for the contract; the thing of value that is given up is known as “consideration.” Thus, one-sided contracts and gifts may not be enforceable under contract law.
• Contracts that are contrary to public policy. The law will not enforce a contract that has an illegal or unjust purpose. Examples of this include a contract that requires one party to violate the law in exchange for payment, or a contract that unreasonably limits an employee’s right to work after being terminated.
• Contracts that must be in writing. The law considers some contracts so susceptible to fraud, that it may only enforce them if in writing. Contracts that must be in writing include those involving the sale of real estate or goods in excess of $500, those than cannot be performed in less than a year, those where somebody becomes a guarantor for another, and contracts involving consideration in marriage.
• Contracts there were entered under duress or undue influence. The law may not enforce contracts where at least one party entered the contract due to fraud, duress, or improper influence.

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