An Agreement is Voidable Contract When It is Enforceable

In the world of legal terminology, there are numerous words and phrases used to describe contracts and agreements. One such phrase is ”voidable contract.” A voidable contract is an agreement that can be canceled or voided by one of the parties involved. In this article, we will explore the concept of a voidable contract and how it is enforceable.

What is a Contract?

Before we dive into the concept of a voidable contract, let`s first define what a contract is. A contract is a legally binding agreement between two or more parties that requires them to do or not do something. Contracts can be in writing, but they can also be oral or implied.

What is a Voidable Contract?

A voidable contract is a contract that has been entered into by two or more parties, but one or more parties have the right to cancel it. This means that the contract is initially valid but can be canceled or voided under certain circumstances.

When is a Contract Voidable?

Contracts become voidable when there is a defect in the contract`s formation that allows one of the parties to cancel or void the contract. These defects can include:

• Fraud

• Misrepresentation

• Duress or undue influence

• Breach of contract

• Incapacity

It is important to note that a voidable contract is different from a void contract. A void contract is an agreement that is not legally binding from the beginning, and it cannot be enforced in court.

Enforceability of a Voidable Contract

Even though a voidable contract can be canceled or voided, it is still enforceable until it is canceled. This means that the parties involved can still be held accountable for fulfilling the terms of the contract until it is canceled or voided.

In other words, if one party decides not to cancel the contract, then the other party can hold them accountable for fulfilling their part of the agreement. For example, if Party A enters into a voidable contract with Party B but decides not to cancel it, then Party B can still enforce the contract against Party A.

Conclusion

In conclusion, a voidable contract is an agreement that can be canceled or voided by one of the parties involved. It is different from a void contract, which is not legally binding from the beginning. A voidable contract is enforceable until it is canceled or voided, which means that the parties involved can still be held accountable for fulfilling the terms of the contract until it is canceled. Understanding the concept of a voidable contract and when it is enforceable is important for anyone entering into a legal agreement.