What is a voidable contract?

A voidable contract is a legally binding agreement in which one or both of the parties have the option to rescind or cancel it. A voidable contract is distinguishable from an unenforceable contract, which one or both parties lack the legal right to enforce. In South Carolina, a contract is voidable if, at the time of its formation, one or both parties lack the capacity to enter into the contract. Capacity can be impaired due to age, status, mental illness, intoxication, or other similar conditions. Another way a contract can be voided in South Carolina is through the presence of a mistake or fraud. If one or both parties did not have accurate information or was deceived in some way at the time of the agreement, then this may lead to a voidable contract. In South Carolina, a contract is also voidable if there is a lack of mutual consent. This means that one party accepted the offer, but the other never agreed to the terms or did not communicate their acceptance. If a contract is found to be voidable, the parties may attempt to salvage it. The affected party must provide the other with proof that the contract should be voided before rescinding it. If this proof is provided, the other party must take reasonable steps to remedy the situation. Generally, a court cannot be asked to determine the validity of a voidable contract until an attempt to renegotiate, mediate, or arbitrate the contract has been unsuccessful.

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