That statement is true.
In most cases, this happen because of the usage of ambiguous language in the contract or a direct violation from the holder.
For example, let's say that you sign a contract to be a singer under management A and would receive 17% Royalty if you do not operate under another management. If you by any chance decided to violate the contract and operate under management B, the 17% royalty from the contract us unenforceable.