What does "voidable" mean in relation to a real estate contract?

In the context of real estate contracts, "voidable" refers to a contract that remains valid and enforceable until one of the parties chooses to exercise their right to cancel it due to specific circumstances. These circumstances might include issues such as misrepresentation, duress, undue influence, or the incapacity of one of the parties to enter into the contract.

This legal concept allows for the protection of parties who may have entered into a binding agreement under less than favorable conditions, acknowledging that they should have the opportunity to withdraw from the contract without facing penalties. The essential characteristic of a voidable contract is that it is initially valid, but one party has the option to void it, thereby rendering it unenforceable.

In contrast, a valid contract that is unalterable or does not allow for cancellation under certain terms does not align with the definition of voidable, as it lacks the provision for one party to withdraw. Similarly, a verbal agreement or a contract that is simply altered by consensus does not meet the criteria that specifically define a voidable contract. Hence, the definition highlighting the ability of one party to legally cancel it due to certain circumstances is key to understanding what makes a contract voidable.