📅 2026 Update: Changes in Contract Law and Practices

Since the original article was published, there have been significant updates in contract law and related practices. These updates impact how contracts are formed, executed, and disputed, particularly in federal contexts. The earlier article continues further down this page and provides foundational knowledge on voidable contracts.

📜 Federal Acquisition Regulation (FAR) Updates

In May 2026, the Federal Acquisition Regulation (FAR) underwent a major overhaul. This update aligns the FAR with the Trade Agreements Thresholds. Key parts affected include sections 1, 5, 10, 22, 25, and 52.

These changes are important for contractors working with the federal government as they impact compliance and bidding processes.

🏛️ Executive Order 14402 Implementation

As of July 1, 2026, the FAR was updated to implement Executive Order 14402. This order is designed to promote efficiency and accountability in federal contracting. It emphasizes the need for better management of contracts, which may influence how voidable contracts are handled in federal dealings.

💵 Inflation Adjustment of Acquisition-Related Thresholds

Effective October 31, 2025, there was an inflation adjustment to several acquisition-related thresholds. The micro-purchase threshold increased from $10,000 to $15,000, while the simplified acquisition threshold rose from $250,000 to $350,000. These adjustments can affect the types of contracts that may be considered voidable based on monetary limits.

⚖️ Truth in Negotiations Act (TINA) Threshold Increase

On July 1, 2026, the threshold under the Truth in Negotiations Act (TINA) for Department of Defense contracts increased from $2 million to $10 million. This change means that more contracts will now require certified cost or pricing data, impacting how parties negotiate and understand terms, including those that may lead to voidable contracts.

📌 Key Points Summary

  • 📜 FAR was updated in May 2026 to align with Trade Agreements.
  • 🏛️ Executive Order 14402 promotes efficiency in federal contracting.
  • 💵 Inflation adjustments increased important acquisition thresholds.
  • ⚖️ TINA threshold for DoD contracts rose significantly.

💡 Tips for Understanding Voidable Contracts

Review your specific situation with your attorney to ensure you fully understand your legal standing regarding voidable contracts.

📑 Understand the Definition

A voidable contract is one that may be canceled at the discretion of one party. Recognizing this can help you identify contracts that may not be enforceable.

⚖️ Review Contract Terms Carefully

Examine all terms within a contract before agreeing. Some clauses may make a contract voidable if not properly understood or negotiated.

📅 Be Aware of Time Limits

Under the Contract Disputes Act, you have six years to submit a claim after it accrues. Missing this deadline may result in losing your right to contest a voidable contract.

📝 Document Everything

Keep thorough records of all communications and transactions related to the contract. Documentation can be crucial if there is a need to prove that a contract is voidable.

🔍 Utilize Available Resources

Familiarize yourself with resources like the Freedom of Information Act (FOIA). Agencies are required to assist requesters, which can help clarify contract issues.

🏆 Services Ranked by User Reviews (2026)

This section covers online services that assist with legal documentation, business formation, and other support relevant to contracts. These services have been evaluated using Trustpilot data from October 2026. Ratings can change over time, and reviews may vary based on user experiences.

🥇 1. LawDepot

LawDepot has been rated 4.0. It is known for offering online legal document templates and customizable legal forms. Reviewers appreciate the affordability of its legal solutions, though some users report issues with document accuracy.

🥈 2. ZenBusiness

ZenBusiness holds a 4.8 rating. It is recognized for its business formation services and compliance assistance. Many users find it helpful for starting new businesses, but some have reported delays in processing times.

🥉 3. LegalZoom

LegalZoom has a 4.6 rating. It is well-known for online legal document preparation and estate planning. While it provides a wide range of services, some customers experience delays in customer service response times.

4️⃣ Rocket Lawyer

Rocket Lawyer holds a 4.5 rating. It specializes in online legal document creation and offers legal advice. Users appreciate its incorporation services, but some may find the subscription model does not fit all needs.

5️⃣ LegalShield

LegalShield has been rated 4.4. It is known for its legal subscription services that give users access to a network of attorneys. However, some users have reported difficulties in reaching their assigned attorneys directly.

🆓 Free Government Help for Contract Issues

Federal agencies like the Department of Labor provide assistance for FOIA requests. They can help you identify records related to contracts and provide guidance on the process.

🔎 What to Compare When Choosing a Service

  • 📄 Types of legal documents offered
  • ⚖️ Accuracy and reliability of documents
  • ⏰ Processing times for services
  • 💰 Cost structure and any additional fees

❓ Frequently Asked Questions

❓ What constitutes a voidable contract?

A voidable contract is one that remains valid until one party chooses to cancel it. Factors such as misrepresentation or undue influence may make a contract voidable.

🕰️ How long do I have to contest a contract?

Under the Contract Disputes Act, you typically have six years from when a claim accrues to contest a contract. Be mindful of this time limit.

📑 What is a disputes clause?

A disputes clause is a section in a contract that outlines how disagreements will be resolved. This can include processes for submitting claims and any potential appeals.

📜 Can a voidable contract become valid?

Yes, a voidable contract can become valid if the party with the option to void it chooses to affirm the contract. This often requires clear communication of intent.

🔍 How can I ensure my contract is enforceable?

To ensure enforceability, review all terms carefully, understand the implications of each section, and maintain thorough documentation of all agreements.

⚖️ What happens if a contract is deemed void?

If a contract is deemed void, it is treated as if it never existed. This means no party has obligations under that contract.

⚖️ Recent Cases Related to Contract Law

Recent court rulings have clarified various aspects of contract law, including voidable contracts and disputes.

For more recent rulings, visit the news section for more rulings.

End of October 2026 Update





During the contract drafting process it is important for both parties to determine if they are creating a voidable contract. Contract laws have defined a voidable contract as a contract that one or both parties may cancel at their discretion.

If contract drafting results in a voidable contract, it means a contract has been created which a party is able to annul at their pleasure. Contract laws have stated that an voidable contract is a contract that is otherwise legal, except that one of the parties has released the other from its obligations.

A contract can be voided in several different circumstances. If a minor was entered into a contract by a legal guardian they may elect to void the contract upon reaching the age of majority. The minor usually has two years in which to void the contract. If an individual has been defrauded by a contract, the defrauded individual will be allowed to avoid the contract.

What are Voidable Contracts

In order to reduce confusion between voidable contracts and void contracts, the United Kingdom, Australia, and other common law jurisdictions outside of the United States and Canada used the word "avoid" to describe the when one party is released from their obligations.

A voidable contract is only considered an enforceable contract against the party which cannot void the contract. A voidable contract cannot compel action against the party which is allowed to "void" the contract.