WHAT ARE THE LEGAL IMPLICATION OF A VOIDABLE CONTRACT
There are laws that guide contracts and make it legally binding. There are some things that will arise that will make a contract void, voidable or unenforceable, having a legal implication on the contract.
A voidable contract is one that can be cancelled or altered for qualified legal reasons. This means that a voidable contract is initially considered legal and enforceable but can be rejected by one party if the contract is discovered to have defects. This also means that If a party with the power to reject the contract chooses not to reject the contract despite the defect, the contract remains valid and enforceable. So, the power to make the contract voidable rests on the party who discovers a defect in the other party.
A voidable contract occurs when one of the involved parties would not have agreed to the contract originally if they had known the true nature of all of the elements of the contract before or at the time of original acceptance. Typical grounds for a contract being voidable include coercion, undue influence, mental incompetence, intoxication, misrepresentation or fraud. Another instance of a voidable contract is when one or both parties were not legally capable of entering into the agreement—for example, when one party is a minor.
A contract that is deemed voidable can be corrected through the process of ratification. Contract ratification requires all involved parties to agree to new terms that effectively remove the initial point of contention or the defect that was present in the original contract.
WRITTEN BY: CHAMAN LAW FIRM TEAM
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