A voidable contract is a legal agreement that is considered valid, but one party has the option to cancel or void it. This type of contract is often used in situations where one party may be under duress or lacks the legal capacity to enter into a binding agreement. This article will explore what a voidable contract is, how it differs from a void contract, and what some common examples of voidable contracts are.

What is a Voidable Contract?

A voidable contract is a valid contract that can be avoided by at least one party to it. This means that the contract is binding until one party decides to exercise their right to void the agreement. The party who chooses to void the agreement can do so without liability for breach of contract. Often, the decision to void a contract is made based on a legal defect or a lack of capacity on one person`s part.

It`s important to note that a voidable contract is not the same as a void contract. A void contract is an agreement that is considered invalid from the beginning. For example, if a contract is entered into under duress or with fraudulent intent, the contract is void and unenforceable. A voidable contract, on the other hand, is a valid agreement until one party decides to exercise their right to void it.

Examples of Voidable Contracts

One common example of a voidable contract is a contract entered into by a minor. Minors are not legally able to enter into contracts until they reach the age of majority. If a minor enters into a contract, they have the right to void the agreement at any time before or after they reach the age of majority. This is because minors lack the legal capacity to enter into binding agreements.

Another example of a voidable contract is a contract entered into under duress. If a party is coerced or threatened into entering into an agreement, the contract is voidable. The party who was under duress can void the agreement without liability for breach of contract.

A contract entered into under false pretenses is another example of a voidable contract. If one party enters into an agreement based on false information provided by the other party, the contract is voidable. The party who was misled can void the agreement and may be entitled to damages for any losses suffered as a result of the false information.

Conclusion

In summary, a voidable contract is a valid agreement that can be voided by one party without liability for breach of contract. These types of contracts are often used in situations where one party lacks the legal capacity to enter into a binding agreement or where legal defects exist. It`s important to note that a voidable contract is different from a void contract, which is considered invalid from the beginning. Understanding the difference between these types of contracts is important for anyone looking to enter into a legally binding agreement.