Voidable Contract

A contract is regarded as voidable when it is entered into without the voluntary consent of the parties. A voidable contract is enforceable by law at the discretion of one or more parties, but not at the discretion of the other parties, according to the act's definition. If the party who is complaining about the contract doesn't cancel it within a reasonable amount of time, the contract may be deemed legitimate.

Reasons To Void A Contract

It is possible for a formal agreement between two parties to become voidable for a number of legal reasons, including:

  • Failure by one or both parties to reveal a critical information
  • A blunder, false statement, or scam
  • Excessive pressure or coercion
  • One party's legal ineligibility to engage into a contract (Example: A Juvenile)
  • A term or phrase that is offensive
  • A contract breach

The legal right to nullify such a contract is known as disaffirmance.

How Voidable Contracts Work?

A voidable contract is initially believed to be valid and enforceable, but if it is later revealed to have defects, one party may cancel it. If a party with the power to reject the Agreement elects not to do so, the Agreement is nevertheless valid and enforceable.

Examples Of Potentially Voidable Contracts

Accepting a voidable contract in which one party is responsible for the misrepresentation or fraud committed by the other party usually only affects that party negatively.

Certain smartphone applications, known as freemium apps, initially let users download them for nothing but eventually permit in-app purchases that cost actual money. Children's freemium apps may lead to a minor adopting the gaming terms and conditions, yet these terms may also permit the eventual solicitation of in-app purchases. A lawsuit was filed against Apple (AAPL) in 2012 as a result of this type of activity, alleging that the transactions were a part of a voidable contract.

Voidable Vs. Void Contracts

The contract is voidable when one of the pertinent parties would not have initially accepted it if they had known the true nature of all of its constituent parts before initial acceptance. In the event that new information is presented after the fact, the aforementioned party shall have the right to reject the contract. If one or both parties to a contract were not of legal age to enter into it, such as when one party is a minor, that contract may also be voidable.


  • If there are specific legal grounds for terminating or changing a contract, then that contract is voidable.
  • Not all agreements can be canceled; there needs to be a legal precedent to free the parties from their obligations.
  • Finding a defect in a contract is a common way to get out of it.
  • If all parties agree that annulling the contract is the best course of action, it is easiest to do so.
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