Definition Definition

What Is Voidable Contract? When Contracts Become Voidable? With Example

What is Voidable Contract?

A Voidable Contract is a written agreement between the two parties that may be deemed invalid for a variety of legal grounds. Whenever an agreement is voidable, one of the parties in the deal has the option to rescind or reject the agreement.

Understanding Voidable Contract

Void vs. Voidable Contracts

A void contract that is invalid is not a legitimate agreement. Because such a deal is difficult to enforce from the start, the involved parties are free to disregard its provisions. Contracts requiring parties to participate in a criminal action, as well as deals made by minors, are fundamentally invalid. In addition, whenever the conditions of the contract become impossible to please, such as in the case of a group's death, the agreement becomes null and invalid. 

A voidable contract, on the other hand, is valid and binding until one of the sides rejects it due to a fault discovered in the deal after signature. If both sides opt to proceed notwithstanding the flaw, the agreement stands true. In these agreements, one party is obligated by the provisions whereas the other side has the right to delete the contract at any moment. The repudiation of the agreement by the freed party renders it invalid.

When Contracts Become Voidable?

Agreements may become voidable if the reasons listed below are eminent -


An agreement may be terminated if both parties make a factual error. However, failing to read the terms does not render it considered invalid.

Inadequate Capacity

To begin with, an individual should have the legal capacity to make a contract. An individual who is unable to realize what she's doing when she enters an agreement owing to alcohol or psychiatric illness may lack the ability to engage in a deal.

Coercive Power, Outsized Influence, Deception or Cheating 

Obtaining approval for a deal in a variety of dubious methods might make the contract voidable. Agreements entered into by force, blackmail, misleading assertions, or inappropriate persuasion may be voidable by the person that suffered the injustice.


A contract entered into by a juvenile that falls within the scope of competence may normally be canceled by the juvenile or his or her guardians.

Practical Example

If MJ Company Limited bluffed the opposition party in signing a contract, the deal will be enforceable against the misleading party, but the other party can seek remedies by deciding to invalidate the deal and that will turn it into a voidable contract.

In Sentences 

  • Due to some misrepresentation, the marriage can became a voidable contract.
  • If the corporation does not ratify it within a certain amount of time, the agreement remains a voidable contract forever.


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