A contract is a legally binding agreement between two or more parties, but certain circumstances can make it voidable, meaning it may be terminated or invalidated. Knowing what can make a contract voidable can help protect both parties involved and prevent legal disputes. Here are some common factors that can make a contract voidable:
1. Lack of Capacity: If one or more parties to a contract were not legally capable of entering into the agreement because of their age, mental capacity, or intoxication, the contract could be considered voidable.
2. Fraud: If a party entered into a contract as a result of fraudulent misrepresentation by the other party, such as lying about the terms of the agreement, the contract could be voidable.
3. Undue Influence: If one party exerted undue influence over the other to enter into the contract, such as exploiting a position of power to coerce them into signing, the contract could be voidable.
4. Duress: If one party was forced or threatened into signing the contract, it could be considered voidable.
5. Illegality: If the terms of the contract violate the law or public policy, the contract can be considered void.
6. Mistake: If one or more parties made a mistake about a material term of the contract, such as the price or the scope of work, the contract could be voidable.
7. Unconscionability: If the terms of the contract are so one-sided that they are grossly unfair or oppressive to one party, the contract could be considered voidable.
It is important to note that these factors do not automatically make a contract voidable. It will depend on the specific circumstances of each case and whether the party seeking to void the contract can prove their case. It is always advisable to seek legal advice before attempting to void a contract.
In conclusion, knowing what can make a contract voidable is crucial in protecting yourself from potential legal disputes. Always ensure that the terms of the contract are fair and reasonable for both parties and that all parties have the capacity to enter into the agreement. If you suspect that a contract you have entered into may be voidable, seek legal advice immediately.