Voidable contract

A voidable contract, unlike a void contract, is a valid contract which may be either affirmed or rejected at the option of one of the parties. At most, one party to the contract is bound. The unbound party may repudiate (reject) the contract, at which time the contract becomes void.

Typical grounds for a contract being voidable include coercion, undue influence, misrepresentation or fraud. A contract made by a minor is often voidable, but a minor can only avoid a contract during his or her minority status and for a reasonable time after he reaches the age of majority. After a reasonable period of time, the contract is deemed to be ratified and cannot be avoided.[1]

when the contract is entered into without the free consent of the party, it is considerate as a voidable contract .The definition of the act states that a voidable contract is enforceable by law at the option of one or more parties but not at option of the other parties. voidable contract will be considered as valid if it is not cancelled by the aggrieved party within a reasonable time .

References

  1. ↑ US Legal, Inc., Contract by a minor, accessed 23 February 2016

See also

This article is issued from Wikipedia - version of the 10/30/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.