What is a voidable contract?

A voidable contract is a contract that is legally binding, but can be annulled (canceled) at the request of either party involved. In Michigan, a contract may be considered voidable if either party was not mentally capable of understanding the contract and its implications, if either party was coerced or forced into signing, or if it was based on false or incomplete information. Additionally, certain types of contracts, such as those involving minors, gambling, or alcohol, are automatically classified as voidable. A contract can be rendered voidable by either the party that created the contract or by a court. When a contract is annulled, any terms agreed upon are no longer enforceable and the parties involved are no longer bound to abide by them. This also means that any money or property already exchanged must be returned to the original parties. In order to void a contract, one of the parties must be able to prove that the contract is voidable. This could be done by providing evidence that one party was not mentally capable of understanding the contract, or by demonstrating that the other party provided false or incomplete information. If a court decides that the contract is voidable, it can nullify it and require the parties to return any items exchanged.

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