Contracts are legally binding, but there are some instances where contracts can be broken if there is a right of rescission present. There cannot be a contract for impossible or illegal actions, and agreements are not considered legally binding.
The right of rescission is not required in legally binding contracts. If there is a right of rescission, a written notice must be given within the specified time frame for it to be valid. It also must be written in whatever form is required. To ensure that the right of rescission is performed properly, it is best to hire a lawyer for counsel. It is crucial that the rules be followed carefully, or the cancellation may be considered invalid.
When contracts are broken, they are considered "breached." When this happens, the other party may sue the other party in an attempt to enforce the binding contract. For these cases, the lawsuit must be filed within 5 years after the date that a written contract was created or four years after the date that a verbal contract was created. If the time period passes, then neither party can sue and an extension will not be granted.
Additionally, some binding contracts have arbitration clauses, which require that any disputes or attempts to cancel the contract need to go through an arbitrator instead of a judge or a jury. The arbitrator makes the final decision on the outcome of the contract.