Contracts are agreements between two parties to exchange something of value.
While that may sound straightforward, certain situations can make a contract void or unenforceable. The law does not recognize contracts for illegal acts like selling narcotics or for immoral acts that are against the law, such as prostitution. If a contract becomes illegal after it is made, it becomes unenforceable and any previous payments made must be returned. Signing a contract under duress or intimidation, also known as overreaching, also voids the agreement. Duress is a threat or intimidation that causes a person to do something against his or her will.