Should We Allow Voidable Contracts?

A voidable contract is initially considered legal and enforceable but can be rejected by one party if the contract is discovered to have defects. If a party with the power to reject the contract chooses not to reject the contract despite the defect, the contract remains valid and enforceable.

Why should we have voidable contracts?

A contract may be rendered voidable if: Any party was under duress, undue influence, or was being intimidated, coerced, or threatened when entering into the agreement; Any party was mentally incompetent (i.e., mentally ill, below the age of majority, etc.)

What happens if a voidable contract is avoided?

If a voidable contract is avoided, the promisee, but not the promisor, is released from it. An unenforceable contract is one that cannot be enforced because of certain legal defenses against it.