The Requirements of a Valid and Enforceable Contract—Volition
What Is Volition? Common Situations Where a Party Does Not Voluntarily Enter a Contract
In this series, we are looking at the necessary components of a valid and enforceable contract. In earlier blogs, we looked at the necessity of an “agreement” and the requirement that the agreement be supported by “consideration.” In this blog, we address the requirement of volition.
What Is Volition?
Simply put, volition means that the parties to an agreement must voluntarily enter into the contract. It assumes that:
- They know they are entering into a legally binding agreement; and
- They understand the terms of the agreement—what they are obligated to do and what all other parties are required to do.
Under What Circumstances Can a Party Argue That They Did Not Enter a Contract Voluntarily?
There are three situations where a party to a contract may lack volition:
- Undue influence—Undue influence suggests an unfair use of power over a person because of a special relationship. The person exercising the influence must have some ability to direct or change the behavior of the victim. Common situations involve parents and children (or children and elderly parents), ministers and parishioners, counselors and patients, and lawyers and clients.
- Duress—Also referred to as “coercion,” duress involves the threat of physical harm or unlawful force, danger to others, the withholding of necessary items (food or shelter, for example), or other forms of manipulation.
- Fraud or misrepresentation—Fraud is the intentional misstatement or false representation of a material fact made to persuade someone to enter a contract and on which the person entering the contract relied. A careless or negligent statement won’t rise to the level of fraud. Furthermore, a statement of opinion does not constitute actionable fraud.
Technically, a person who lacks contractual capacity due to age or mental condition may not voluntarily enter into a legal agreement. We will, however, address the broader issue of contractual capacity in a future blog.
Contact MCIS Law
At MCIS Law, PLLC, in Stafford, we provide comprehensive counsel to businesses and business owners throughout southeast Texas, handling all matters related to business formation. For a confidential consultation with an experienced and knowledgeable lawyer, email us or call our office at (346) 297-0121. We accept all major credit cards.