What is Voidable Contract? An agreement which is enforceable by law at the option of one or more of the parties there to, but not at the by an option of other or others in a voidable contract.
So, under a voidable contract, there must be at least one party who can enforce the contract. Let discuss in detail voidable contracts are as under: –
See Also: What is the Wagering Contract
Contracts Declared to be Voidable | Examples
The following are the contracts which have been declared by law as voidable.
Contract caused by Coercion
Where under a contract, the consent of any contracting party is caused by coercion, the contract is voidable at the option of the party.
Illustration: A threatens to kill B if he does not sell his house to A. B agrees. It is a contract where coercion has been used by A. So, it is voidable at the option of B and not of A.
Contract caused by Under Influence
When the consent of any of the contracting party is caused by undue Influence, the contract is voidable at the option of the party, whose consent is received by using coercion.
Illustration. A, the teacher of B purchases the car of B for Rs. by using undue influence. The actual value of a car is $300,000. This contract is voidable at the option of B and not of A.
Contract caused by Fraud
Where the consent of any of the contracting party is caused by fraud, the contract becomes voidable at the option of the party whose consent is received by fraud.
Illustration: A sells his horse to B which A knows to be unsound. But A says to B that horse is quite sound B believes and purchases it. This is a fraud by A and contract will be voidable at the option of B and not of A.
Contract caused by Misrepresentation
When in a contract, the consent of any of the contracting parties is caused by misrepresentation, the contract is voidable at the option of the party Whose consent is so caused.
Illustration: A by misrepresentation leads B erroneously to believe that five thousand bulbs are made annually at A’s factory.
B enters into an agreement believing on A But actually, four thousand bulbs are produced at A’s factory. The contract will be voidable at B is an option.
Contract of Unsound mind
A contract entered into by a person who is occasionally of unsound mind due to drunkenness or who is delicious from fever is voidable at the option of the party who proves himself unsound mind at the time of contract.
Illustration: A who is usually of sound mind enters into a contract with B when he was unsound mind due to his illness. The contract is voidable at the option of B and not of A.
