Under what conditions can contracts be set aside?

The correct choice highlights that contracts can be set aside when there is a specific legal justification. This reflects the principle that a contract must meet certain conditions to be considered valid and enforceable. Various factors can lead to a contract being set aside, including elements such as misrepresentation, duress, undue influence, or the lack of capacity to contract.

In legal terms, a contract may be deemed voidable if one party did not fully consent to the terms or if the agreement was formed under circumstances that violate legal principles. This understanding emphasizes the necessity for both parties to have a mutual agreement under clear and legal terms for the contract to remain valid.

The other options do not accurately represent the legal framework surrounding contracts. For instance, while both parties might agree to cancel a contract, this does not address broader legal justifications which can lead to a contract being set aside due to issues like fraud or coercion. Similarly, the idea that a benefit was received does not imply that a contract is valid; it may instead indicate that a party has a claim for damages rather than providing grounds to annul the contract. Lastly, consent alone, though essential in forming a contract, does not guarantee that the agreement cannot be contested based on legal reasons. Thus, understanding the