A voidable contract is a legal agreement that can be canceled or voided by one or both parties involved. This type of contract is created when one party enters into an agreement under duress, coercion, fraud, undue influence, or misrepresentation. The person who was coerced or misled into signing the contract has the option to either void the contract or enforce it.
It is important to note that voidable contracts are not the same as void contracts. A void contract is an agreement that is not legally enforceable from the beginning, whereas a voidable contract is initially enforceable but can be voided by one of the parties due to certain reasons.
For instance, if someone is forced to sign a contract due to threats or intimidation, the contract can be deemed voidable since it was signed under duress. Similarly, if one party intentionally misleads or withholds information from the other party, the contract can also be voidable.
In some cases, the option to void the contract may be time-limited. For example, if the contract contains a clause that allows one party to void the contract within a certain amount of time, the option to do so will expire once that time has passed. It is important to carefully review the terms and conditions of any legal agreement before signing it to avoid any potential issues.
In conclusion, a voidable contract is a legal agreement that can be canceled or voided by one or both parties due to specific circumstances such as duress, coercion, fraud, undue influence, or misrepresentation. It is important to carefully review the terms and conditions of any legal agreement to ensure that you fully understand what you are agreeing to before signing.