Contract Law

What are Voidable Contracts

What are Voidable Contracts

November 30
00:00 -0001

What are Voidable Contracts

During the contract drafting process it is important for both parties to determine if they are creating a voidable contract. Contract laws have defined a voidable contract as a contract that one or both parties may cancel at their discretion.
If contract drafting results in a voidable contract, it means a contract has been created which a party is able to annul at their pleasure. Contract laws have stated that an voidable contract is a contract that is otherwise legal, except that one of the parties has released the other from its obligations.
A contract can be voided in several different circumstances. If a minor was entered into a contract by a legal guardian they may elect to void the contract upon reaching the age of majority. The minor usually has two years in which to void the contract. If an individual has been defrauded by a contract, the defrauded individual will be allowed to avoid the contract.
In order to reduce confusion between voidable contracts and void contracts, the United Kingdom, Australia, and other common law jurisdictions outside of the United States and Canada used the word “avoid” to describe the when one party is released from their obligations.
A voidable contract is only considered an enforceable contract against the party which cannot void the contract. A voidable contract cannot compel action against the party which is allowed to “void” the contract.
Share

About Author

admin

admin

Related Articles

Popular In Contract Law

No posts where found

Contract Law News

Government Files Lawsuit against Fluor CompaniesGovernment Files Lawsuit against Fluor Companies On November 8, 2012, the Department of Justice announced that the United States government is intervening in a case against Fluor Corporation and its subsidiary, Fluor Hanford Inc, after the Texas-based companies used federal funds for lobbying activity.

Guide To: Contract Law Lawyers

Guide to Finding Business LawyerGuide to Finding Business Lawyer How do I find a Business Lawyer?Business lawyers are essential for commercial enterprises to ensure that they remain knowledgeable of the laws regulating their business and protecting their assets from liability.
Guide to Finding Contract LawyerGuide to Finding Contract Lawyer A contract lawyer is a unique arrangement that has lawyers working as temps by the terms of contract agreed upon by the client and the lawyer or lawyer temp agency.