U is for Unenforceability
In this reel, I talk about unenforceability.
“Unenforceable” doesn’t always mean “this contract is terrible.”
In many cases, it just means that a specific clause can't be enforced as written....but the rest of the contract can still stand.
Here's a common example: credit card processing fees.
Many business owners add a clause that passes the entire processing fee directly to the client. Depending on your state, that clause may be:
- heavily regulated,
- restricted to certain percentages, or
- outright prohibited.
So what happens if your clause doesn’t comply?
It may be considered unenforceable — meaning you may not be able to collect that fee as written — but your whole contract doesn’t disappear. Your payment terms, cancellation policy, rescheduling rules, and intellectual property rights can still be valid and enforceable. (This is specifically what that boilerplate "Severability" clause is for!)
This is why “I got this contract from a friend” doesn't work, by the way.
If you suspect a part of your contract might be unenforceable — or you’re not sure what’s allowed in your state — it’s time for a legal checkup.