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voidable contract

Last modified: Thu Feb 23 16:37:38 2006

Unlike a void contract (see: VoidContract), whose legal status is as if it never existed, a voidable contract is one that remains in force until it is declared void by one of the contracting parties. For example, one of the parties may fraudulently misrepresent a service to be offered. The offended party may then declare the contract void and refuse to be bound by it (see: Contract). However, if goods are exchanged under the contract before it is voided, then title is passed. With a void contract no title passes, because effectively the contract never existed.

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