How does a contract become voidable?

A contract can become voidable under certain conditions where one or both parties may have the option to void or cancel the contract. Common factors that can render a contract voidable include:

1. Misrepresentation:

If one party makes a false statement or misrepresentation of a material fact that influences the other party's decision to enter into the contract, it can be voidable.

2. Fraud:

If a party intentionally deceives another party through fraudulent activities or false representations, the contract can be voided.

3. Coercion:

If one party uses coercion or threats to force the other party into entering the contract, it can be considered voidable.

4. Mistake:

If both parties make a mistake regarding a material fact in the contract that affects the agreement, it can be voidable.

5. Lack of capacity:

If one party lacks the legal capacity to enter into a contract, such as being a minor or mentally incapacitated, the contract can be voidable.

When a contract is found to be voidable due to any of these factors, the affected party can take legal action to void the contract through processes such as rescission or revocation. Legal remedies can be sought to address the consequences of the voided contract.