What aspect can result in the voidability of a contract?

Prepare for the CA Foundation Business Law Exam with our comprehensive quiz. Utilize flashcards and multiple-choice questions, each complete with hints and explanations. Ace your exam confidently!

The correct answer highlights that duress or undue influence can lead to the voidability of a contract. This means that if one party to a contract was forced or pressured into agreeing, or if they were in a position where their free will was undermined by the other party’s influence, the contract may not be legally binding.

When a contract is formed under conditions of duress, one party may threaten another to obtain consent, thereby stripping that person of the ability to make a fair decision. Similarly, undue influence occurs when one party takes advantage of their position of power over another party, resulting in a lack of voluntary consent and negating the effectiveness of the agreement.

A contract formed in such circumstances is considered voidable at the option of the coerced party, meaning they can choose to affirm or rescind the contract. The presence of choice and free agreement is crucial for a valid contract, and when these are lacking due to duress or undue influence, the contract fails to fulfill the necessary legal requirements.

The other options do not typically result in the voidability of a contract. For instance, having legal counsel present or ensuring that all parties voluntarily and consciously agree to the terms strengthens a contract rather than leading to its voidability. A mutual mistake

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy