Voidable Contract in Simple Words

7 July 2022

A voidable contract is a legal term used to describe a contract that is valid and enforceable, but may be canceled or voided by one or both parties involved. This type of contract is different from a void contract, which is not valid from the beginning and cannot be enforced by either party.

Voidable contracts may be canceled for a variety of reasons, including fraud, mistake, undue influence, or coercion. If one party can prove that any of these factors were present at the time the contract was formed, they may be able to void the contract and walk away without any penalties or obligations.

For example, let`s say you sign a contract to purchase a car, but later find out that the seller intentionally misrepresented the condition of the vehicle. In this case, you may be able to void the contract and get your money back.

It`s important to note that only the party who was affected by the fraud, mistake, undue influence, or coercion can void the contract. If the other party was not aware of these factors, the contract may still be valid and enforceable.

In conclusion, a voidable contract is a legal agreement that can be canceled by one or both parties if certain conditions are met. If you`re ever involved in a contract dispute, it`s important to consult with a legal professional to determine your rights and obligations.