Tricked into Signing a Contract? Your Legal Rights

If you think you were tricked into signing a contract, make sure the contract meets your state's requirements for a binding legal agreement. If the contract contains an offer, an acceptance, and consideration, then you are generally bound by the contract, but each state provides its own set of exceptions. Enter your ZIP code below to find an attorney familiar with these exceptions who can help you if you were tricked into signing a contract.

UPDATED: Jul 17, 2023Fact Checked

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption

Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

UPDATED: Jul 17, 2023

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

UPDATED: Jul 17, 2023Fact Checked

A person you thought was a “friend” has a great idea for a business venture. He brings you a contract that looks legal enough, so you sign it. Within a matter of weeks, you discover things are not quite on the up and up. So you start looking for ways to terminate the contract and ask yourself:

  • What is considered a valid contract?; and
  • if I signed a contract because its terms were misrepresented to me, what are my legal rights?

A valid contract has an offer, an acceptance, and consideration. If a contract meets your states requirements for a binding legal agreement, you are generally bound by the contract.

Each state provides its own set of exceptions. One generally accepted exception is fraud. Depending on the nature of the fraud and the extent of your damages, if any, you may have criminal or civil remedies.

Your first step in a contract dispute is to determine if there is even a valid contract. It must include all the basic elements of a binding contract: an offer, an acceptance, and consideration.

An offer is a manifestation of present contractual intent imparting definite and certain terms communicated to the other party. This means that the intent to establish a contract must be definite and evident. Basically, it’s clear that you and the other person intended to enter a contract.

“Certain terms” refers to the essential terms of the contract. The essential terms of a contract identify the parties to the contract, the subject matter of the contract, the contract price, and the time for performance of the contract.

For example, if Smith tells Jones, “If you want to buy my blue chair for $100, let me know by next Thursday”, this offer identifies the parties (Smith and Jones), the subject matter (blue chair), price ($100), time for performance (by next Thurs) and therefore contains the elements of a valid offer.

Acceptance is assent to the terms of the offer communicated to the person who made the offer. When Jones accepts Smith’s offer by agreeing to its terms and communicates that acceptance to Smith, a valid contract has been formed.

“Consideration” is a bargained for exchange, a promise for a promise. Here, Smith is selling a blue chair to Jones and Jones is paying $100 for the chair. This is consideration – a promise for a promise. Therefore, a valid contract exists between Smith and Jones.

If there is not a valid offer, a valid acceptance, or a valid consideration, there is not a valid enforceable contract.

Even if the contract appears to be binding and enforceable on its face, you may have relief through exceptions in your state’s laws. If you signed the contract based on a misrepresentation by the other party, you may be able to claim that the contract is voidable.

Fraud is a defense to the enforcement of the contract. To perfect a fraud defense, you must demonstrate more than a misunderstanding or a failure to read the contract before you signed it.

To void a contract, you must show the misrepresentation was intentional and fraudulent. There are different types of fraud that may apply to your situation:

  • If your signature was forged, you have a defense of fraud in the execution. The contract is void and there is no valid contract.
  • If you signed the contract based on intentional misrepresentation of the terms, this would be a fraud. In other words, you were induced to sign the contract based on intentional misrepresentation. In this situation, the contract would be voidable.

To end a contract, you may need to file a civil suit to have the contract declared officially void.

If you and another person accumulated assets through a business, the suit may also be combined with a suit to dissolve the organization and divide the remaining assets.

If you lost money because of the misrepresentations, you may also have an additional suit for fraud or deceptive trade practice. Your damages would be the monetary value of your losses.

If your damages are more extensive and the factors clearly demonstrate an intent by the other party to obtain a fraudulent benefit, you may also have criminal remedies. Some states recognize criminal offenses like “theft by deception” and “securing execution of a document by deception”.

Before you choose a civil or criminal remedy, consult with an attorney who specializes in contract law. They can advise you on whether you have entered a valid contract and which remedies are best for your situation.

Case Studies: Examples of How Insurance Can Help in Cases of Being Tricked into Signing a Contract

Case Study 1: Fraudulent Business Venture

Mr. Johnson thought he had found a promising business opportunity when a close friend presented him with a contract. Trusting his friend, Mr. Johnson signed the contract without thoroughly reviewing its terms. Within weeks, he realized that he had been misled, and the business venture was not as it seemed. Mr. Johnson was determined to terminate the contract and protect his rights.

In this case, Mr. Johnson’s homeowner’s insurance policy with personal liability coverage proved valuable. He contacted his insurance provider and explained the situation, seeking legal assistance. His insurance policy included coverage for legal expenses related to contract disputes. The insurance company connected Mr. Johnson with an attorney specializing in contract law.

The attorney reviewed the contract and identified several instances of misrepresentation and fraud. With the support of his insurance coverage, Mr. Johnson filed a civil suit to have the contract declared void. Additionally, he pursued a separate suit for fraud and deceptive trade practices, seeking compensation for his financial losses. The attorney guided him through the legal process, maximizing his chances of a successful outcome.

Thanks to his insurance coverage, Mr. Johnson was able to secure legal representation and protect his rights. Without the assistance of his insurance policy, he might have faced significant financial losses and struggled to navigate the complex legal procedures.

Case Study 2: Asset Accumulation Dispute

Sarah and Mark entered into a business partnership, combining their resources to accumulate assets. However, over time, Sarah discovered that Mark had deceived her about the nature and profitability of their investments. She wanted to terminate the partnership and ensure a fair division of assets.

Sarah turned to her business insurance policy, which included coverage for contractual disputes and partnership dissolution. She contacted her insurance provider and explained the situation. The insurance company referred her to an attorney experienced in business law and contract disputes.

The attorney assessed the partnership agreement and identified several instances of misrepresentation and fraudulent behavior by Mark. Sarah filed a civil suit to dissolve the partnership and divide the remaining assets based on the misrepresented information. Simultaneously, she pursued legal action for fraud and deceptive trade practices, seeking compensation for her financial losses.

Sarah’s insurance coverage played a crucial role in providing the financial means to hire legal representation and navigate the complex legal proceedings. With the support of her insurance policy, she was able to protect her rights and achieve a fair resolution.

Case Study 3: Criminal Remedy for Contract Fraud

Emily, a small business owner, discovered that she had signed a contract under false pretenses. The other party had intentionally deceived her, resulting in substantial financial losses for her business. Emily wanted to pursue both civil and criminal remedies to hold the party accountable and recover her losses.

Emily’s commercial insurance policy included coverage for legal expenses related to contract fraud. She contacted her insurance provider, who connected her with a specialized attorney in contract law and criminal offenses. The attorney thoroughly examined the contract and gathered evidence of intentional misrepresentation and fraud.

With the assistance of her insurance coverage, Emily pursued a civil lawsuit to void the contract and seek compensation for her business losses. Simultaneously, she worked with the attorney to file a criminal complaint against the responsible party. The attorney used the evidence gathered to support the criminal charges, such as “theft by deception” and “securing execution of a document by deception.”

Thanks to her insurance coverage, Emily had the financial resources to hire an experienced attorney and pursue both civil and criminal remedies. This comprehensive approach allowed her to protect her rights and seek justice against the party who deceived her.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption

Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption