Definition of Voidable contract:
A contract that has legal effect and force when it is made, but is liable to be subsequently annulled or set aside by the courts through the process of rescission.
Circumstances or features that make a contract voidable include (1) non-disclosure of one or more material facts, (2) misrepresentation, (3) mutual mistake, (4) lack of free will of a contracting party, or presence of one contracting partys undue influence over the other, and (5) a material breach of the terms of the contract. A contract that is voidable in only one or few parts may be saved by the process of severance. Not to be confused with void contract.
Failure by one or both parties to disclose a material factA mistake, misrepresentation or fraudUndue influence or duressOne party's legal incapacity to enter a contractOne or more terms that are unconscionableA breach of contract.
A voidable contract is a formal agreement between two parties that may be rendered unenforceable for a number of legal reasons. Reasons that can make a contract voidable include the following:.
How to use Voidable contract in a sentence?
- Finding a defect in the original contract is a common way to void that contract.
- Hundreds of Millions of policy holders who were affected by this natural disaster are now subject to a more distinct voidable contract .
- The property manager was sure to win the case against his delinquent tenants as the terms were clear and it was not a voidable contract .
- Not all contracts are voidable; legal precedent must exist to absolve responsibility.
- The simplest way to void a contract is for both parties to agree that voiding is the best option.
- I wanted to go through the courts to see if the agreement could become a voidable contract and I could leave it.
Meaning of Voidable contract & Voidable contract Definition