A voidable contract is a legal agreement between two parties that can be cancelled or deemed unenforceable if one or both parties decide to do so. The term “voidable” means that the contract is not automatically considered invalid, but rather it has the potential to become so if certain conditions are met.

Voidable contracts are typically created when one party may have been taken advantage of or misled by the other party. For example, if someone signs a contract under the influence of drugs or alcohol, the contract may be deemed voidable because the party was not able to make a rational decision at the time.

Another common example is when a contract is entered into under false pretenses. If one party misrepresents themselves or the terms of the agreement, the contract may be considered voidable.

Voidable contracts are not automatically cancelled. The party who feels that they have been wronged must take action to cancel the contract. This is typically done through legal proceedings, where the party will need to provide evidence of the circumstances that led to the contract being voidable.

It’s important to note that not all contracts are voidable. Some are considered to be void from the beginning, such as contracts that are illegal or against public policy. Others may be voidable only in certain circumstances.

In conclusion, a voidable contract is a legal agreement that can be cancelled or deemed unenforceable if one or both parties decide to do so. These contracts are typically created when one party may have been taken advantage of or misled by the other party. It’s important to seek legal advice if you believe you have entered into a voidable contract in order to understand your options and protect your rights.