They Signed It—But It’s Still Not Binding: 4 Ways a Contract Can Be Legally Worthless

You got it in writing. It’s signed. Maybe even notarized. But in court, that contract might not protect you at all.

Every week, I meet business owners, landlords, contractors, and consultants who rely on contracts that are legally defective—without even knowing it. Here are four of the most common deal-breakers that courts use to void contracts.

1. Lack of Consideration

If one party gives something and the other gives nothing, the contract may be unenforceable. Consideration means both sides must exchange something of value. A “free” service or favor—even if documented—may not hold up in court unless properly framed.

🛑 Red flag: Contracts that state “for good and valuable consideration” without actually defining what was exchanged.

2. Missing or Ambiguous Material Terms

Courts need clarity to enforce a deal. If your agreement leaves out the “who, what, when, where, and how much,” it might be too vague to enforce. Even a signed agreement can be tossed if essential terms like payment amount, timing, or deliverables are missing.

📎 Example: A contractor agreement that doesn’t specify the scope of work or total compensation.

3. Unsigned, Undated, or Improperly Executed

A signature alone isn’t enough—it must be properly executed. Courts regularly reject contracts that lack a date, have only one party’s signature, or are signed by someone without authority (like a sales rep with no legal authority to bind the company).

✅ Pro tip: Always confirm that the signer is authorized—and make sure every party signs and dates it.

4. Illegal or Unlicensed Subject Matter

If a party needed a license to legally perform the contract but didn’t have one, the contract may be void. This happens often in real estate, construction, and brokerage agreements—especially in New York and New Jersey.

🚫 Example: A home improvement contract with an unregistered contractor in NJ is void under the Home Improvement Practices Act.

How Strong Is Your Contract—Really?

A legally worthless contract can destroy your leverage and your lawsuit. Before it’s tested in court, let’s review it together and make sure it’s enforceable.

🔍 Book a 1-on-1 contract review today →

At JDE Law Firm, PLLC, we draft, revise, and enforce contracts that win. Let’s make sure yours does too.

📞 Call NY: 718-966-0877 | NJ: 732-490-7120