Voidable Contract

Glossary

Compliance

Voidable Contract

On the basis that a valid contract is one that is freely agreed between two parties who understand its contents, a voidable contract is one that can be unenforceable if a series of mitigating circumstances are present, including unintentional errors, illness/mental illness rendering one of the parties incapacitated in law, one of the parties is under the influence of medication, drugs or alcohol, misrepresentation, fraud, lack of disclosure of material information, or coercion. Voidable contracts are valid and can be enforced in court until such time as grounds giving rise to voiding materialise and action is taken to this effect.

logo-animationlogo-animationlogo-animation

Related terms