What does it mean for a contract to be voidable?

A voidable contract is one that is valid and enforceable on the surface but may be canceled by one of the parties under specific circumstances. This cancellation can happen due to reasons such as misrepresentation, fraud, undue influence, or mental incapacity at the time of signing. When a contract is voidable, the party who has the right to cancel it can choose to either affirm the contract and proceed, or they can choose to rescind it, thereby making the contract unenforceable.

Understanding the nature of voidable contracts is essential in real estate transactions, where issues may arise that can affect the validity of agreements made. Recognizing which party holds the power to void the agreement can have significant implications for enforcing contract terms and obligations.