A Voidable Contract is:

A Voidable Contract is:

• A. An agreement that may be terminated by one of the parties (previously valid and enforceable)
• B. A contract that is illegal
• C. An agreement that is automatically void
• D. A contract that cannot be broken

Answer: (A)

A voidable contract is a binding agreement that is enforceable, but one party has the right to cancel it because something went wrong when the contract was formed. It isn’t void from the start; it remains valid until the party with the right to cancel decides to rescind. Common reasons include misrepresentation (being told false facts),duress or undue influence, lack of capacity (for example, a minor or someone not legally able to contract), or a mutual mistake. Because the contract is valid up to the point of cancellation, the other party may still be able to demand performance unless and until the canceling party exercises their right to end the agreement. This differs from an illegal contract, which cannot be enforced at all, and from a contract that is automatically void from the outset, which has no legal effect from the beginning.

A voidable contract is a binding agreement that is enforceable, but one party has the right to cancel it because something went wrong when the contract was formed. It isn’t void from the start; it remains valid until the party with the right to cancel decides to rescind. Common reasons include misrepresentation (being told false facts),duress or undue influence, lack of capacity (for example, a minor or someone not legally able to contract), or a mutual mistake. Because the contract is valid up to the point of cancellation, the other party may still be able to demand performance unless and until the canceling party exercises their right to end the agreement. This differs from an illegal contract, which cannot be enforced at all, and from a contract that is automatically void from the outset, which has no legal effect from the beginning.