What is a voidable contract?

A voidable contract is a valid agreement that can be legally enforced until one of the parties chooses to void it. This means that the contract remains in effect and has legal standing, but one party has the option to withdraw from it under certain circumstances, such as instances of misrepresentation, undue influence, or a party lacking the capacity to contract (like minors or mentally incapacitated individuals).

The essence of a voidable contract lies in the rights it grants to one party, allowing them the choice to affirm or reject the contract based on their discretion. This flexibility is what distinguishes a voidable contract from a void contract, which is considered invalid from the outset and cannot be enforced by either party. Understanding this concept is crucial in real estate transactions, as various factors can render contracts voidable, impacting the obligations and rights of those involved.