Voidable Contract Can Be Avoided at the Option of Mcq

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A voidable contract is a legal agreement that is typically entered into by two parties, but can be avoided by one of the parties involved. In such cases, the contract is considered to be legally binding until the option to avoid it is exercised by the party who has the right to do so.

When a party chooses to avoid a voidable contract, it means that they are exercising their right to terminate the agreement due to a defect or flaw that makes the contract invalid. This can happen for a variety of reasons, including fraud, misrepresentation, undue influence, or duress. Essentially, the party avoiding the contract is claiming that they were either misled or forced into entering into the agreement against their will.

One of the key features of a voidable contract is that the option to avoid it is only available for a limited period of time. Once that period has elapsed, the contract becomes legally binding and cannot be avoided.

In some cases, a voidable contract can also be cancelled through a legal process, such as a court hearing. This can happen if there is a dispute between the parties involved, or if the contract is found to be unlawful or in violation of public policy.

It`s important to note that a voidable contract is not the same as a void contract. A void contract is one that is completely invalid from the outset and has no legal standing whatsoever. By contrast, a voidable contract is initially legally binding but can be avoided under certain circumstances.

If you are considering entering into a contract, it`s important to be aware of the potential for a voidable contract. By understanding the circumstances under which a contract can be avoided, you can protect yourself from potential legal issues down the road. As always, it`s advisable to seek legal advice before signing any legally binding agreements.