What is a voidable contract?

A voidable contract is a legally binding agreement in the state of Washington that can be canceled at the discretion of one party, while still remaining valid until it is voided. This means that either party can choose to terminate the agreement, but until that decision is made, they must abide by the terms of the contract. Voidable contracts are different from void contracts, which are not legally binding and can be canceled at any time. For example, if a contract was made under duress, or with a minor, then the contract would be considered void and therefore not valid. The main characteristic of a voidable contract is that one party has the power to void it, while the other party does not. This power comes from two main sources. The first is if one party made a mistake, misrepresentation, or fraud at the time of agreement. The second is if one party violated the terms of the contract, such as not performing a certain task. If one party decides to void a voidable contract, the other party must be notified and given the chance to dispute the decision. Once the voiding is complete, the contract is no longer valid, and any obligations created in the contract no longer apply.

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