Mgr. ANNA VEJMELKOVÁ, advokát

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WHEN A CONTRACT IS INVALID – AND WHY IT CAN DESTROY THE ENTIRE RELATIONSHIP

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“We signed the contract, but in the end, it was like it never existed.”

Mr. Petr signed a loan agreement with a friend. They wrote it by hand, listed the amount and conditions. But when it came to enforcing the agreement, the court declared it invalid – it lacked basic elements, the amount was vague, and the borrower’s signature was illegible. Petr lost both his money and his friendship. An invalid contract = no legal protection.

When is a contract invalid, what’s the difference between absolute and relative invalidity, what it means for both parties, how the court assesses it, and how to avoid common drafting mistakes.

⚖️ What contract invalidity means

  • The contract has no legal effect from the beginning

  • It’s as if the contract never existed

  • Causes include: violation of law, lack of will, ambiguity, or circumvention of the law


🧩 Absolute vs. relative invalidity

  • Absolute – the court must consider it on its own, e.g. against public morals

  • Relative – must be raised by a party, e.g. mistake, duress, unfair pressure


🚫 Consequences of invalidity

  • You can’t enforce anything based on the contract

  • Each party must return what was received (unjust enrichment)

  • Leads to disputes over scope, damages, interest, etc.

  • An invalid contract won’t protect your rights in court


📚 Real-life example:

A client signed a construction agreement for home renovation, but it lacked a clear project description and price. When a dispute over quality arose, the court declared the contract invalid – the client had to prove everything through other means. Without the contract’s support, most of his claims failed.


✅ Lawyer’s recommendation:

Before signing, check whether the contract contains all required elements.
Ambiguities, missing information, or legal nonsense can result in invalidity.
I’ll review your contract and ensure it meets all legal standards – and actually works.

Not sure if your contract is valid or if it poses legal risks?
Send it to me – I’ll identify the weaknesses and advise you on improvements.Get in touch – I’ll check its legal effects and recommend next steps.

Contact a legal professional – I specialize in contract law.
Learn more here.

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