What is a voidable contract?

A voidable contract is a contract that is legally valid and enforceable, but may be canceled by one of the parties. In California, a contract is voidable if it includes a mistake, misrepresentation, intimidation, undue influence, lack of capacity, or if it was entered into because of fraud or duress. A mistake occurs when at least one of the parties makes a mistake in the contract’s terms, such as agreeing to provide different items than those that were requested. Misrepresentation occurs when one of the parties misstates a fact or hides a material fact that would affect the other party’s decision to enter into the contract. Intimidation involves using force, threat, or coercion to make one party do something they would not normally do. Duress happens when one party creates pressure on the other by threatening to involve the law or use physical force to make them enter into the contract. Undue influence occurs when one party takes advantage of a vulnerable party’s situation to get them to agree to terms that are not in their best interest. Lack of capacity happens when the party does not have the ability to comprehend the contract. Lastly, fraud occurs when one party intentionally deceives the other about the true nature of the contract. If any of these conditions apply to a contract in California, then it is considered voidable and can be rescinded by one of the parties. It is important for both parties to read contracts carefully and understand their terms and conditions before signing, as this can help prevent any issues related to a voidable or unenforceable contract.

Related FAQs

What is a warranty in a contract?
What is equitable relief?
What is a durable power of attorney?
What are the elements of a contract?
What is a severability clause?
What is a term in a contract?
What is an assignment of contract?
What is equitable estoppel?
What is the common law?
What are the types of contracts?

What is a voidable contract?

Related FAQs

Related Blog Posts