An agreement is a voidable contract when it is enforceable. This statement may seem confusing at first, but it simply means that when an agreement is legally binding and enforceable, it can still be cancelled or annulled by one of the parties involved.
To understand this concept better, let’s break down what a voidable contract is. A voidable contract is a legally binding agreement that one of the parties involved can choose to cancel or void if they have been misled, coerced, or deceived in some way. In other words, one party has the option to either affirm or reject the agreement.
Now, when an agreement is enforceable, it means that it meets all the legal requirements to be upheld in court. For an agreement to be enforceable, it must have an offer, acceptance, consideration, and a meeting of the minds. When all these elements are present, and the agreement is in writing and signed by both parties, it becomes legally binding and enforceable.
However, even though the agreement is enforceable, it may still be voidable by one of the parties for various reasons. For example, if one of the parties was misled or coerced into signing the agreement, they may have the option to void it. Other reasons for voiding a contract may include a mistake, fraud, undue influence, or incapacity.
It is important to note that a voidable contract is not the same as a void contract. A void contract is one that is not legally binding and cannot be enforced due to violating the law or public policy. On the other hand, a voidable contract is legally binding but can be cancelled or voided by one of the parties.
In conclusion, an agreement is a voidable contract when it is enforceable. This means that even though the agreement is legally binding and can be enforced in court, one of the parties may still have the option to void it if they were misled, coerced, or deceived in some way. Understanding the concept of voidable contracts is essential for anyone entering into a legally binding agreement to protect their rights and interests.