What does a voidable contract allow?

A voidable contract allows one or more parties to set it aside or enforce it based on certain circumstances, such as misrepresentation, undue influence, or coercion. This means that while the contract is valid and legally binding upon signing, one party has the option to choose not to be bound by it if they wish. This characteristic differentiates voidable contracts from void contracts, which are never legally enforceable from the outset.

In contrast, a voidable contract does not automatically become void; it remains valid until one party actively chooses to void it. This makes the notion of ‘setting aside’ central to understanding voidable contracts, as the decision to affirm or void the contract lies with the affected party. Thus, it empowers the party with the right to choose to enforce the contract or to back out if the circumstances justify doing so.