Voidable Contracts: What You Need to Know About Their Legal Status

Definition & Meaning

A voidable contract is an agreement that is valid and enforceable but can be canceled or voided at the discretion of one party. This means that while the contract exists, one party has the option to nullify it due to certain conditions. For instance, if a party was misled by false information or if one party is a minor, the contract may be voidable. In contrast, a void contract is one that is invalid from the outset, such as a marriage that has been annulled by a court.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A person enters into a contract to buy a car but later finds out that the seller provided false information about the car's condition. The buyer can choose to void the contract.

Example 2: A minor signs a lease agreement for an apartment. Because the minor lacks the legal capacity to enter into contracts, the lease is voidable at their discretion. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Legal Age of Majority Conditions for Voidability
California 18 Contracts with minors are voidable.
Texas 18 Fraudulent misrepresentation renders contracts voidable.
New York 18 Contracts can be voidable if entered under duress.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Void Contract An agreement that is not legally enforceable from the beginning. Void contracts cannot be ratified; voidable contracts can be affirmed or canceled.
Enforceable Contract A valid agreement that can be upheld in a court of law. Enforceable contracts are not subject to cancellation by one party.

What to do if this term applies to you

If you find yourself in a situation involving a voidable contract, consider the following steps:

  • Review the terms of the contract and identify any conditions that may allow for cancellation.
  • Consult with a legal professional if you're unsure about your rights or obligations.
  • Explore US Legal Forms for templates that can help you draft or respond to contracts effectively.

Quick facts

  • Typical Fees: Varies by legal service.
  • Jurisdiction: Applicable in all states.
  • Possible Penalties: None for voidable contracts; however, breach may lead to damages.

Key takeaways