What is a voidable contract?

A voidable contract is a legal agreement between two parties that can be canceled by one or both of the parties involved. This type of contract is valid until canceled. In Arizona, a voidable contract is governed by the Uniform Commercial Code. A voidable contract is different from an unenforceable contract. An unenforceable contract is one that cannot be enforced in court due to some legal issue. That means the contract is invalid. On the other hand, a voidable contract is still valid and enforceable until it is canceled, even though one or both of the parties may decide to cancel it. A voidable contract in Arizona is usually the result of one of the parties entering into the contract under duress, fraud, or mistake. If the party can demonstrate one of these issues, then they may be able to get out of the contract without any legal consequences. If a contract is canceled due to fraud, for example, then the defrauded party can sue for damages. It is important for parties to carefully review contracts before signing them. If there is any sign that one of the parties is not acting in good faith or is under duress, then it is best for the parties to seek legal advice and have the contract reviewed before signing.

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