Voidable Contract : Contract Law

Q. Under what circumstances contract becomes voidable? [4 marks - 2022]


Voidable Contract
Section 2(i) of the Indian Contract Act 1872 defines voidable contract as:
An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract;

A voidable contract is a formal agreement between two parties that may be rendered unenforceable for any number of legal reasons, which may include:

Failure by one or both parties to disclose a material fact
  • A mistake, misrepresentation, or fraud
  • Undue influence or duress
  • One party's legal incapacity to enter a contract (e.g., a minor)
  • One or more terms that are unconscionable
  • A breach of contract

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