• The contract lacks consideration.
Example: Tom promises to give $20 to Dan, but Dan does not have to do or give anything in
• The contract was obtained by fraud.
Example: Blue Company refuses to sell to Red Company, so Red Company sends Pink
Company to buy goods from Blue Company and turn them over to Red Company.
• The contract limits the amount of damages that can be recovered.
Example: The contract states that in the event of a minor breach, the damages will be $100
regardless of the actual loss.
• The contract contains a mutual mistake, stating something different from what either party
Example: Both parties intended a delivery date of March 15, but the contract says April 15.
• The contract contains a unilateral mistake that was material to the agreement and the other
party knew or should have known of the mistake.
Example: Maria paid Tom a lot of money for a painting signed “Picasso.” Tom knew that Maria
thought Pablo Picasso painted it, when really Arnold Picasso was the painter, but Tom did not