voidable contract

  

Definition

A contract that has legal effect and force when it is made, but is liable to be subsequently annulled or set aside by the courts through the process of rescission.

Circumstances or features that make a contract voidable include (1) non-disclosure of one or more material facts, (2) misrepresentation, (3) mutual mistake, (4) lack of free will of a contracting party, or presence of one contracting party's undue influence over the other, and (5) a material breach of the terms of the contract. A contract that is voidable in only one or few parts may be saved by the process of severance. Not to be confused with void contract.


Use voidable contract in a sentence

  • The property manager was sure to win the case against his delinquent tenants as the terms were clear and it was not a voidable contract.

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  • Hundreds of Millions of policy holders who were affected by this natural disaster are now subject to a more distinct voidable contract.

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  • I wanted to go through the courts to see if the agreement could become a voidable contract and I could leave it.

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