The Grounds of Voidable Contracts

What is a voidable contract?

A voidable contract is a formal agreement between two separate parties that may be considered unenforceable due to various legal reasons that may include one or more of the following: fraud, misinterpretation, breach of contract, legal incapacity in cases with minors, failure to disclose material fact, etc. This specific type of contract is designed to allow a party to prematurely break off if this is what they choose to do. The party at the disadvantage is still allowed to continue forward with the contract or end it if they choose to do so.  Some examples of a voidable contracts would be ones involving minors, as they are able to enter into contracts but also determine whether or not to breach terms without any legal repercussions. Someone who lacks mental capacity or  had been using drugs and/or alcohol at the time of the draft of the contract cannot legally enter into a legal binding contract as well.

What makes a contract voidable?

The contract must be legal consensual in order to be considered enforceable under law. There must also be a defined “consideration” signed between two separate parties agreeing to the terms of the contract. Voidable contracts are valid in cases where one party was threatened into entering into any agreement or was under any kind of influence, any party is mentally incompetent, any party made a mistake in terms of interpretation, and if fraud was involved.

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