What does it mean that a contract does not produce any legal effect?

When it is said that a contract does not produce any legal effect, it refers to the fact that said contract lacks legal validity and does not have the necessary force to be executed or to assert rights before a court.

Imagine that Ana, an emerging artist, and David, an art collector, decide to enter into a contract in which Ana agrees to create a series of exclusive paintings for David’s private collection. However, during the signing of the contract, it is discovered that Ana has used a pseudonym and provided false information about her identity and artistic experience. David, confident in the authenticity of the artist, did not suspect any wrongdoing at the time.

Later, it is revealed that Ana does not have the artistic ability that she had initially claimed and that her pen name was an attempt to hide her lack of experience. Given that of the fundamental requirements for a contract to be valid is the veracity and authenticity of the parties involved, the contract between Ana and David would be considered invalid.

The contract would be null because an essential defect has been incurred: the lack of veracity in Ana’s information. As a result, the contract for the creation of exclusive paintings would be without legal effect from the beginning.

The usual contractual invalidity situations are nullity and annullability. Remember that nullity represents the sanction applied to contracts that present some vice or defect that makes them irremediably invalid. This means that they lack legal effects from the start. By contrast, annullability (or voidability) constitutes the sanction that is directed at contracts that exhibit a repairable vice or defect, which allows them to have legal effects until they are annulled.

Related concepts

• Contract
• Who can enter into a contract?

• What does the expression «not be contrary to the law, morality or public order» mean?

• How do I know if a jurisdiction and applicable law clause is valid?
• What happens if a jurisdiction and applicable law clause is not included in a contract?
• Nullity
• Annullability