Voidable Agreements
A valid contract is a legally enforceable promise, or agreement, to do or not do something. You can end or withdraw from a valid contract, but that usually means incurring some legal liability. A voidable agreement is the exception. If circumstances exist that make the contract voidable, you or the other party may be able to end the contract without facing any legal troubles.
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Identification
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If you want to end a contract, first figure out if you have a void contract or a valid contract. A void contract appears to be an agreement but does not meet all of the legal requirements for a contract and is thus invalid and unenforceable by either party. Alternatively, a valid contract is legally sound and enforceable. Voidable agreements are binding on one of the parties but not on the other--the party judged to lack the capacity to have consented to the contract.
Types
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There are generally two types of voidable agreements. The first kind involves parties that lack capacity to make a contract, such as minors, intoxicated persons and mentally incompetent persons. The second type are contracts made voidable by some action, such as fraud or misrepresentation, when one party misstates, intentionally or unintentionally, some important aspect of the agreement to the detriment of another. Other actions include the use of force or undue influence, such as taking advantage of a weakened elderly or ill person.
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Features
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Voidable agreements turn on the issue of consent. You have to understand the nature and purpose of the contract to consent. Parties without this capacity to understand can almost always withdraw from a contract. In the case of fraud, if you are told you are buying a diamond, but it is actually cubic zirconia, you have not consented at all to the cubic zirconia. If you make a contract under duress or undue influence, you lack the free will to choose and consent.
Considerations
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Mistakes when contracting can lead to either void or voidable agreements based on whether voluntary consent occurred. There are two types of mistakes, mutual and unilateral. Mutual, or bilateral, mistakes occur when both parties misunderstand some crucial aspect of a contract. These mistakes can make valid agreements voidable. A unilateral mistake means only one party is wrong about the contract. This contract is generally valid and not voidable.
Warning
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Mistakes and misunderstandings can happen with any agreement, but you should make sure that all parties can and do consent to the contract. You may not want to knowingly enter into a voidable contract. If you do contract with a party that may lack capacity, such as a minor, you may want to get an adult or guardian to cosign the contract. If you are aware of or suspect any foul play, do not make an agreement.
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