What Is a Voidable Contract Wikipedia

A voidable contract is a legally binding agreement that is invalid or can be canceled at the choice of one or both parties involved. This type of contract is typically formed when one of the parties involved lacks the legal capacity to enter into a contract. Voidable contracts are commonly formed due to misrepresentation, fraud, undue influence or duress, mistake, and illegality.

According to Wikipedia, a voidable contract is an agreement that is considered to be valid and enforceable at the time of signing but is subject to cancellation or annulment at the request of one or both parties involved. This type of contract differs from a void contract in that a void contract is considered to be invalid from the beginning and cannot be enforced.

Voidable contracts can be canceled in several ways. One way is through the consent of both parties involved. Another way is through the rescission of the contract, which is the act of canceling or annulling the contract. Rescission can be done either through mutual agreement or by a court order.

Misrepresentation is a common reason for the formation of voidable contracts. Misrepresentation occurs when one party provides false or misleading information that induces the other party to enter into the contract. This type of misrepresentation can be innocent, negligent, or fraudulent.

Undue influence or duress is another factor that can lead to the formation of voidable contracts. Undue influence occurs when one party takes advantage of a position of power to force the other party to enter into the contract. Duress, on the other hand, occurs when one party threatens or coerces the other party into the agreement.

Mistake is also a common reason for the formation of voidable contracts. Mistake can occur when one or both parties make an error in understanding the terms of the contract, resulting in an agreement that is not what either party intended.

In conclusion, a voidable contract is a legally binding agreement that can be canceled or annulled at the request of one or both parties involved. Voidable contracts are typically formed due to misrepresentation, fraud, undue influence or duress, mistake, and illegality. It is important for parties entering into a contract to fully understand the terms and implications of the agreement before signing to avoid creating a voidable contract.

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