Exxon Contract Should Be Considered Void (Edited).

By Stabroek News || August 18, 2022

Dear Editor,

There has rightly been much talk about the nature of the Exxon contract with calls for it to be renegotiated. I honestly do not know why our lawyers did not bring up this point before, the very nature of the contract voids it from its inception. According to one website provided, contracts can be, are voided at the inception if there is a mistake or fraud/misrepresentation by one of the parties. The exxon contract obviously does not represent the will or interest of Guyanese. Contracts may also be voided if a party entered into a contract under duress (The People of Guyana were not consulted, had no say, did not agree to the terms of the Exxon Contract). Another type of contract that can be void is an unconscionable contract (Government of Guyana paying the income taxes of Exxon).

Therefore, even before the contract lands before a court of law, its obvious violations are so glaring that upon appropriately advised perusal, the contract in its entirety may be scrapped, this being confirmed in our courts. Principally, the contract did not represent (Fraud/misrepresentation) the will of the people of Guyana.  At this point, there is no need for renegotiation, just the drafting of a contract vetted by the Guyanese public, representative of our interests, in which Exxon and its affiliates may continue to operate lawfully in Guyana’s territory.

The Exxon Contract is therefore void on the basis of:

  1. Misrepresentation
  2. Duress – the People of Guyana were not party to the terms of the Contract.
  3. Unconscionable terms – Government of Guyana paying the income taxes of exxon.
  4. Illegality – Exxon apparently intends to defraud the US Government by requesting GoG to issue a receipt stating the Exxon paid income taxes.

Yours faithfully,

Craig Sylvester

Eight Reasons Contracts Can Be Voided.

Contracts are an essential part of business and personal relationships. They define the terms and conditions of a transaction or agreement between two or more parties. However, sometimes circumstances arise that make it necessary to terminate or void a contract. In this blog, we will discuss eight ways to legally void a contract.

‍1. Lack of capacity – If one or more parties to a contract lacks the legal capacity to enter into the agreement, the contract can be voided. For example, a contract entered into by a minor or an individual under the influence of drugs or alcohol can be voided.

2. Fraud or misrepresentation – If one party to the contract intentionally provides false information or conceals relevant information, the other party can void the contract. Misrepresentations can take many forms, such as concealing defects in a product or making false promises.

3. Duress or undue influence – If one party uses threats or coercion to force the other party into signing the contract, it can be voided. Duress can take many forms, such as physical violence, blackmail, or threats of legal action.

4. Unconscionable terms – If the terms of the contract are unfair or oppressive, the contract can be voided. For example, if a contract requires one party to waive their legal rights or imposes excessively high fees or interest rates, it may be unconscionable.

5. Illegality – If the subject matter of the contract is illegal or against public policy, the contract can be voided. For example, a contract to sell illegal drugs would be void.

6. Mistake of fact and mistake of Law – If one or both parties to the contract were mistaken about a material fact, the contract can be voided. For example, if the seller of a house misrepresented the size of the property, the buyer could void the contract.    Laws change from time to time and usually people are not updated about them, entering a contract on basis of misinterpretation, if proved, can help you to void a contract. 

7. Impossibility or impracticability – If unforeseen circumstances make it impossible or impracticable to fulfil the terms of the contract, it can be voided. For example, if a hurricane destroys the subject matter of the contract, it may be impossible to perform.

8. Breach of contract – If one party fails to fulfil their obligations under the contract, the other party may be able to void the contract. However, this typically requires that the breach be material and not a minor or technical violation.

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